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Just to play devil's advocate here, if you step back and see, Hulu is not a bad acquisition for Netflix and why? Its because Hulu will bring Netflix the 'scale' and additional premium customers. I know a lot of people who purchase Hulu or Netflix, but cannot justify buying both.

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I do not recall recently reading stories about how Hulu traffic is now 30% of the internet traffic during peak times. I do recall reading this: http://www.telecompetitor.com/report-netflix-represents-30-o...

I don't think Hulu has much scale to offer Netflix.

Netflix already has the scale.

Why would Netflix want a bunch of 'users' that want free streaming?

Netflix needs to license more current tv episodes and they could crush Hulu.

Wouldn't you rather the company spend money to license content instead of acquiring physical infrastructure considered obsolete after 6 months?

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