Ask HN: How did Netflix beat Hulu?

I don't necessarily think Netflix beat Hulu. I for one have a subscription to both services, and both fill different wants. I look to Netflix more for custom content and movies. I look to Hulu for access to shows. To me they are two completely different services offering different solutions, while having some overlap. Hulu, IMO, does a better job of delivering a "cable replacement" for shows, while Netflix is able to replace the on-demand and premium movie channels. As for quality of service, I can't notice a difference in terms of streaming.

Netflix is innovative and were able to do it while simultaneously shifting business models. They are open about their technology platform and how they build their infrastructure, and the tools they use. I think this alone attracts good talent. They appear to have a "if you can build it better" approach and give engineers some freedom when it comes to developing new features and tools, whether they are internal or external. They also involve the community in contests to improve their algorithm. To me they appear to always be innovating, not willing to accept what currently exists and striving for better.

I think they look carefully at what customers want and then do whatever it takes to give it to them.

When Hulu came out, they were a serious threat because all the quality content was on Hulu. As a joint venture between the major studios, they had all the TV shows that people actually enjoyed watching, while Netflix had only the dregs they were willing to license to them.

So Netflix figured "Well, if the most important thing customers value is access to quality content, what can we do to become their primary point of access to quality content?" And so they went out and sponsored a bunch of Netflix Original Series, shows that actually get people talking about stuff that's only available on Netflix. They had a couple big early hits with House of Cards and OitNB, both of which (in retrospect) look like they were tailor made to get high word-of-mouth promotion.

No commercials. Commercials have roughly the same appeal as diarrhoea.

I think that Netflix is rocking it with their original ad-free content more than anything. The movie catalog? It's awful most of the time. I don't care for most of the documentaries, C-rated "mock busters," and direct to video flicks. But the original shows? Awesome.

We use Hulu for more current stuff and more recently, their movie offerings. I have a weird job schedule and being able to binge watch on my iPad during downtime is fantastic. The price is decent too. I also have an HBO Now subscription and I like some their original shows besides Game of Thrones. It's a little more pricy, so just out of principle I find myself checking there first when I want to see a movie.