In the US Hulu is now the number two video site after YouTube. This reflects the divide between UGC video and “network” or professional video. YouTube has all kinds of jewels as well as lots of crap (although it’s trying to move toward Hulu), whereas people go to Hulu for “catch up” (DVR) TV and to see clips from shows they know and like already.
Considering the competition that existed when Hulu arrived, Hulu’s rise is impressive. And a paid model is coming.