Edited on Jun 23, 2026.
Internet movie streaming has become the most-watched competitive battleground in modern entertainment. Netflix is the dominant player. Amazon launched Prime Instant Video last month. Hulu Plus continues to grow. Apple is operating iTunes video and the second-generation Apple TV. The cable industry has been rolling out TV Everywhere services in response. The category is producing the most consequential restructuring of how consumers access movies and television content since the launch of premium cable channels in the 1970s.
This is the working profile of where internet movie streaming sits in early 2011, what the major players are doing, and what the broader entertainment industry is going to need to absorb.
Where the category actually sits
Several data points anchor the conversation.
Netflix dominance. Netflix has roughly 20 million subscribers and is adding subscribers at the fastest rate in its history. The company's Watch Instantly streaming has become a meaningful share of overall Netflix viewing. The streaming-only $7.99 per month tier launched in November 2010 has been one of the most consequential pricing moves in the category.
Amazon's entry. Amazon Prime Instant Video launched on February 22 with a library of approximately 5,000 titles, free to Amazon Prime members at the existing $79 per year membership fee. The bundled value proposition gives Amazon meaningful competitive standing despite the smaller library.
Hulu's evolution. Hulu — the joint venture between NBC Universal, News Corp, and Disney — operates the free Hulu service and the paid Hulu Plus tier launched in 2010. Hulu Plus has been growing, and the broader Hulu business is rumored to be exploring strategic options including a potential sale.
Apple's positioning. Apple iTunes operates a substantial movie rental and purchase business. The second-generation Apple TV launched in fall 2010 at $99 and has been selling well. Apple's strategic options in the broader streaming category are substantial.
The cable response. Comcast, Time Warner Cable, Cablevision, and the major cable operators are rolling out TV Everywhere services that let cable subscribers stream cable channel content. The defensive response is partly about retention of cable subscribers in the face of streaming alternatives.
The major players
Netflix. Reed Hastings has built Netflix into the most consequential streaming brand in the consumer entertainment category. The transition from a DVD-by-mail business to a streaming-led business is well in progress. The November 2010 launch of the streaming-only tier separated streaming pricing from DVD pricing for the first time and signaled the strategic direction. Netflix's content acquisition spend has been growing substantially as the company shifts from licensing existing studio content to commissioning original programming.
Amazon. The Prime Instant Video launch positions Amazon as a credible Netflix competitor with a structural cost advantage. Prime members get streaming as a free benefit on top of free two-day shipping. The bundled value proposition is materially better than Netflix's standalone offering for households that already shop on Amazon.
Hulu. The Hulu strategic options conversation has been intensifying. The combination of free ad-supported Hulu and the paid Hulu Plus tier produces a unique market position. Whether the owners maintain Hulu, sell it, or restructure it will be one of the most consequential entertainment industry events of 2011.
Apple. Apple's iTunes video business, the Apple TV hardware, and the broader iOS device ecosystem give Apple a strong consumer video position. Apple has not committed to a subscription streaming service to date, but the strategic possibility is real.
The cable industry. Comcast, Time Warner Cable, and the broader cable operators are deploying TV Everywhere services to give cable subscribers streaming access to cable channel content. The strategy is partly defensive against streaming competitors.
The studios. Sony Pictures, Warner Bros., Disney, Paramount, Fox, and Universal are all working through their streaming strategies. The studios' decisions about licensing terms, exclusive windows, and direct-to-consumer offerings will shape the streaming category for years.
Why this is the most competitive category in modern entertainment
Three structural factors are driving the intense competition.
The economics are large and growing. Consumer spending on home entertainment is shifting from DVD purchases and rentals toward subscription streaming. The category that streaming services are competing for is measured in tens of billions of dollars annually.
The bundle is structural infrastructure. Netflix, Hulu Plus, Amazon Prime, Apple iTunes — each represents a fundamentally different bundling model. The companies that win at scale will be the ones that figure out the right combination of price, content, device support, and broader bundled value.
The content acquisition costs are rising fast. Studios that negotiate with multiple streaming buyers can extract better terms. The result is that content costs for all the streaming players are growing faster than subscription revenue. The competitive dynamic forces every player to optimize their content strategy.
What the strongest operators are doing
Three operating practices distinguish the strongest streaming operators.
Aggressive device support. Netflix is on virtually every consumer device that streams video. Roku set-top boxes, Sony, Samsung, LG televisions, the PlayStation 3, the Xbox 360, the Wii, iPads, iPhones, Android phones. The broad device support is part of the moat. Amazon, Hulu, and Apple are all working through their own device-support strategies.
Sustained marketing investment. Netflix has been spending substantially on marketing. The brand awareness lift has been measurable. Amazon's Prime Instant Video launch was supported by substantial marketing investment. Hulu has been operating sustained brand-building campaigns.
Original content investment. Netflix has signaled that original content production will be a major strategic priority. The company has been negotiating with major film and television talent for original series production. The strategic logic is sound — original content is the most defensible content asset because no one else can license it.
The communications angle
For brand and PR teams thinking about the streaming category, four operating considerations stand out.
The category narrative is shifting fast. Communications work that does not absorb the structural changes will not age well. The category that was Netflix-dominated in 2010 is becoming a multi-player competitive environment.
Content rights are the strategic infrastructure. The studio relationships each streaming service operates are the underlying competitive infrastructure. Communications that does not engage with content rights and studio dynamics misses the strategic story.
Device support is a brand asset. Streaming services that work across the broadest range of consumer devices accumulate compound advantage. Communications work should emphasize the breadth and quality of device support.
The bundle is the value proposition. The streaming category is shifting from standalone subscription pricing to bundled value. Communications work that focuses only on subscription price misses how consumers will actually compare services going forward.
The bottom line
Internet movie streaming is one of the most consequential and competitive categories in modern entertainment. Netflix leads. Amazon has just entered. Hulu, Apple, and the cable industry all have meaningful strategic positions. The studios' choices about content licensing and direct-to-consumer streaming will shape the broader category for years. The brand and PR teams that understand the category structure now will be ahead of the teams that try to catch up later. The story is going to be one of the most-watched media business stories of the coming several years.
