These two companies don't do the same thing under the hood. Netflix has a lot more time to do it's transcoding than Hulu does. Hulu gets their content from stud

These two companies don't do the same thing under the hood. Netflix has a lot more time to do it's transcoding than Hulu does. Hulu gets their content from studios and has to have a turnaround of hours sometimes, whereas Netflix can take weeks to get something online. Yes, there's a battle for the livingroom going on, and Netflix could start building out the same infrastructure. But it's not trivial for Netflix to just step in and 'steal' away Hulu's customers without first doing a lot of work to lower their transcoding turn-around. For now, both companies have their place because they're not providing the exact same service to the studios.