Hulu is up against some big competition. Netflix (
As Hulu spends to keep up with its bigger competitors, it continues to lose money for its owners. In fact, it's losing more this year than the year before. Comcast (
The loss had accelerated sharply in the second quarter, up more than threefold, to $40 million. Those losses show up in the results of Hulu owners Comcast, Disney (
Here's what Hulu might be spending so much money on.
The Epix catalog
During the second half of last year, Netflix decided it wouldn't renew its contract with Epix, which holds the rights to films from Lionsgate, MGM, and Paramount Pictures. Hulu picked up the contract starting Oct. 1. While financial details weren't released, considering the high-profile titles in Epix's catalog, it likely cost quite a bit.
The relative value of the Epix catalog for Hulu, however, is arguably significantly larger than it was for Netflix. Netflix decided to focus on producing original films instead of renewing its contract with Epix. It also has several exclusive-rights contracts directly with studios, including its deal with Disney that went live in...