Hulu is reaping the benefits of a deal lapse between Netflix and Pay-TV channel Epix. After the two parted ways, Epix joined forces with the smaller streaming format network and brought along big Hollywood films such as Hunger Games: Catching Fire and World War Z.

Netflix Inc.'s decision to part ways with Epix is in line with its trend towards original programming and exclusive movie rights.

Ted Sarandos, Chief Content Officer at Netflix, blogged on Sunday about the loss of big-name movies:

"While many of these movies are popular, they are also widely available on cable and other subscription platforms at the same time as they are on Netflix. Through our original films and some innovative licensing arrangements with the movie studios, we are aiming to build a better movie experience for you."

Netflix has already introduced some original movies, including Ridiculous Six, the first of a comedy quartet from Adam Sandler.

Another original offering is A Very Murray Christmas with Sofia Coppola directing Bill Murray. Both these movies will be released in December.

Mr. Sarandos assures that Netflix will continue working on its own list of movies starring big names like Brad Pitt, Ricky Gervais, and Judd Apatow. He acknowledges, however, that "it will take us time."

On the television front, Netflix is building up its list of original series' with House of Cards and Orange is the New Black recently joining on.

This move on Netflix's part has opened up a whole host of opportunities for the smaller Hulu.

Jointly owned by 21^st Century Fox, Comcast Corp.'s NBCUniversal and Walt Disney Co., Hulu has become more aggressive in its content recruitment in a bid to become more of a rival for the dominant Netflix.

RBC Capital Markets analyst David Bank says that this year Hulu is expected to double its content spending to $1.5 billion.

The deal with Epix is one such bid, and it is mutually beneficial. Epix, owned by MGM, Lions Gate Entertainment Corp., and Viacom Inc.'s Paramount studios, owns the rights to many big films including Transformers: Age of Extinction, but is still number two to category-leading HBO. It is aiming to distribute content to as many networks as possible.