This is a huge step up on content acquisition.  To date, Netflix has spent $350 million on all of its streaming content.  At $100,000 an episode, currently airing television shows will run the company as much as two million dollars a season.  That's no small change.

The move can certainly be seen as an effort to eliminate Hulu as competition.  After all, if Netflix has all its current content and new TV shows to go with it, Hulu won't look like much of an option.