Netflix should buy Hulu and complement their streaming DVD with TV content. Netflix already offers a subscription for $8.99 a month for unlimited streaming. Add TV shows to the mix and you got a service people will love to use every day. Plus I think Netflix has the better recommendation engine which will help guide viewers into watching other TV shows that are relevant. As for short clips, get rid of them! Just provide full TV shows but if you want to cite clips, do what YouTube does and provide a way to start and end the stream at specific points in the video.
A fee-based Hulu could come with better content. Currently, Hulu carries TV shows that air for free on the broadcast networks, as well as some cable shows, older movies, clips and movie trailers. But if Hulu starts to charge, newer movies could hit the site.
However, the paid-video market is already crowded with rivals such as Apple Inc.'s iTunes, Amazon.com Inc.'s Unbox and Netflix Inc.'s online delivery of movies.
Hulu has to be different – and that's not an easy task.