The rise of Hulu threatens to derail Netflix’s successful transition from DVDs to web streaming, warns Citi analyst Mark Mahaney in a research report.
Mahaney writes, “We continue to believe that Netflix’s ability to successfully manage the shift to digital over the next 5-10 years will be the biggest determinant of its intrinsic value.”
So far, Netflix is still much more compelling than Hulu thanks to its DVD and streaming offerings, but long term, the “exponential growth” at Hulu.com, coupled with its new premium offering is a big competitive threat.
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