Netflix and Hulu Plus battle for customer attention

The battle to bring content into the living room has accelerated over the past two years, with an influx of companies offering new products and services. The struggle between Netflix and Redbox has forced some customers to patiently wait to see how the industry shakes up, but both services have appealing features.

Both companies are trying to remain stable in a changing market that consumers and companies alike are still learning about.

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Hulu Plus is a $10 monthly subscription that yields more than the original PC-only, ad-supported service that is available for free. The paid service includes more access to content, including SD and high-definition TV episodes, along with Hulu Plus app support on the Apple iPhone, iPod Touch, iPad, and directly into the living room.

Hulu Plus includes Sony PlayStation 3 support and Microsoft Xbox 360 support is in the works for 2011 -- there is no Nintendo Wii support.  In the short-term, Hulu Plus will find its way to Sony and Vizio this fall, with additional partners expected to add support in early 2011.

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Netflix provides DVD rentals and streaming support to subscribers with prices starting at $8.99 per month -- and streaming is included for free. Streaming Netflix is available through the Xbox 360, PS3, Wii, Roku, TiVo, and HDTVs and Blu-ray players from LG, Samsung, Sony, and other companies.

There are clear battle lines being drawn in the market between content providers, hardware manufacturers, and providers. Most recently, it was learned Hulu Plus will find its way to Roku and TiVo set-top devices.

A small number of people have shown higher interest in cord cutting -- mainly for financial reasons -- but very few people have actually done it. A recent PCWorld writer canceled his Time Warner subscription after it reached $85 per month. He now pays $9.73 per month for Netflix service, enabling him to save more than $900 per year. Some consumers are even signing up for both Netflix and Hulu Plus.

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The author admits there are several downsides to streaming only, including a lack of local TV, cable channels. Some TV episodes and other content will eventually find their way to Netflix and Hulu Plus at some point.

As some Americans think about cutting the cord, there are still several viable alternatives. Roku, Boxee and other set-top makers are expecting increased competition.

Netflix has continued to evolve amid growing competition from rivals looking to enter the living room.

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