Well the aliens at Fox are invading and they have lots of content to distract and melt your brains but what does this somewhat new offering say about interactive and on demand entertainment of the future?

First you have to think about what type of content Hulu offers. Right now about 80% is outdated reruns that cable TV networks won’t run anymore but that other 20% of their content offering last nights, last weeks or even last seasons shows is where they will make their money.

With Disney purchasing 30% of Hulu and offering their vast variety of programming distribution of content has narrowed even further.

The one thing that Hulu has over Itunes or other pay providers is that its free… Its a very simple concept but it doesn’t matter how low the cost is people just do not want to pay for content that was on their television for free last night.

Professional content is also a big attraction YouTube is still the largest single online provider of videos but you may have noticed over the past few months YouTube is changing.

They have been forced to remove content uploaded by users because it is a direct copy of copyright materials but they have also started removing content that simply contains music backgrounds or video clips.

Fan videos are a large attraction because regular users who are not the select group of featured accounts can show their own creativity.

Tell the truth would you go to YouTube if the only videos offered were WhatTheBuck and FailBlog? And when it comes down to strict copyright the elite of YouTube break the rules too.

All you have to do is go to the Main Videos page on YouTube ….  Of the 24 videos that are on the front videos page 19 are blatant copyright infringements or just clips grabbed off the TV. If YouTube had to remove them they would be left with nothing.

So will Hulu eat the brains of YouTube?

Maybe, but no matter what it will change the location of content and who is making profit by distributing it.