Hulu is and has always been in a unique position. They're one of few big name streaming companies and the only one that's trying to offer an alternative to traditional television. That's one of the reasons that the company keeps changing - they're trying to find the right way to do things.
Netflix has been making some big moves to improve the quantity and quality of its streams, and that's a very good thing for a company relying on streaming customers. The downside is that those customers getting DVDs and Blu-rays with their streaming content are getting left in the lurch.
For many, Netflix is a must-have app. It's an essential for Blu-ray players, TVs, game consoles and other home theater components, and it seems to be present in nearly every piece of new gear that hits the market. It's not surprising that other companies want to jump in on it.