Netflix streaming is just about the greatest thing around (yeah, it’s better than Hulu) for video content. The interface is clean, easy to use, and the selection is good enough for my $10 a month. Streaming has also saved Netflix a whole lot of money.

To stream a movie in HD costs Netflix around 5 cents, 3 cents for standard def. That’s it. Now granted, that doesn’t account for licensing and all that, but it sure as hell beats the pants off sending things through the mail. That cost could even go down as more competitors enter the back-end market responsible for supporting the Netflix streaming system.

My question – why aren’t more things available for streaming? If it’s so cheap, that extra revenue could be kicked back in part to studios for freeing up more streaming content. Everyone wins.

Source: Business Week

Netflix and Hulu started dueling for streaming dominance some time ago, and for the most part Hulu has been winning that fight. It looks like Netflix may have taken a leg up, though, and I’m hoping it stays that way.

According to comScore, Netflix barely edged past Hulu in unique visitors this past month. I’ve really enjoyed Netflix streaming service, but the company needs to get up to current seasons if it wants to give Hulu a serious run for it. One of my favorite shows, Party Down (which none of you were watching, which is why it got the ax – shame on you), had current season streaming from Netflix and I watched it every week. It’s a fantastic alternative to a cable subscription, which tends to just fill my living room with a lot of noise.

Hulu’s trying to keep the top spot with Hulu+, granting access to full current seasons and some legacy episodes for a fee. The company’s ad structure could really hold it back, especially when competing with the Netflix platform.

The fabled Hulu Plus is real, it seems, delivering “HD” programming to your mobile devices and internet-connected TVs for just $10 a month. You’ll have access to full current seasons of shows like 30 Rock and Glee and a library of older episodes from shows like Arrested Development.

I say “HD” because you should take a look at that screenshot above. Yes, that’s a screenshot. Notice anything? That it looks like shit, perhaps? That’s a shot from my iPhone 4 on a Wi-Fi connection and it looks like total crap. Sorry, Hulu, but you’re going to have to do better. Even worse than the quality, you still have to watch ads despite your subscription fee. You guys do know how to make me feel like a dollar sign.

What I really want for streaming video is something more akin to the Netflix Watch Instantly system. It’s painless, easy, and for serial programming it’s better than anything (even NinjaVideo). I’ve been watching Party Down recently – updated weekly with the new episode – and I’ve fallen in love with the Netflix system. If anyone has the future of online video in hand, it’s these guys. It’s not as expensive as Hulu Plus and you get access to a library of movies as well.

If you want to see Hulu Plus for yourself, download the free app and check out some preview episodes or opt-in to the preview invite system over at Hulu.

During yesterday’s earnings conference call, Netflix CEO Reed Hastings announced plans to launch a streaming-only rental service. Unfortunately that program won’t be launched in the US. The new program is meant to expand the company’s international profile, but that’s not the only reason we won’t see it stateside. Hastings also said the model needs to be proven in other markets before expanding.

That probably means Netflix wants to know the model can be profitable before launching worldwide. The new system faces unique challenges as the rent-by-post services just aren’t an option in other countries. Hastings says the postal systems in other countries can be too “tricky” for physical mail to really work out.

I’m all for a streaming-only option. Sure, I can have that now as a part of regular Netflix service, but the DVDs are more of a hassle to me than anything else. Why bother with them when all I want is on-demand movie selection?