So Time Warner wants to invest in Hulu, just to remove the biggest advantage it offers over Netflix, et al? Well, that would be a plus for Netflix, as it would level the field as far as when new programming is available to customers. I don't see how this benefits Time Warner though.
When new technology presents new opportunities, it is usually best to invest resources into adopting your business model to take advantage of it, rather than investing in trying to stop it. The recording industry learned that lesson the hard way.
Right. Even if they succeed in stopping Hulu, someone else will come out with the same thing. And suddenly they will have the same problem (maybe more, if several outlets pop up and start offering incentives to draw in a split audience and new people start cutting), only with a bunch of fading stock and fewer resources to combat the issue.