Hulu vs. Netflix still a lopsided fight

Which is the more valuable, financially viable online TV alternative to traditional cable TV--Hulu or Netflix? Hulu, which is likely to be sold soon, reported this week that it has signed up 875,000 users to its Hulu Plus fee-based service since launching last fall. Netflix (Nasdaq: NFLX), meanwhile, has 7.7 million subscribers and has found rapid success with its streaming-only membership.

The more intriguing fact, however, may be conversion rate. The conversion rate from free Hulu to fee-based Hulu Plus is only about 3 percent, but Netflix traditionally converts about 93 percent of its initial free trial participants to paying customers.

Perhaps in the hands of a buyer like Google (Nasdaq: GOOG), Hulu can narrow the gap.

For more:
- read this Fast Company story

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