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Behold Hulu, Hollywood's answer to YouTube


video iconHulu.com, which launched in private beta today, emulates many features popularized by Google's (GOOG) YouTube. But unlike YouTube, which mostly shows user-generated content, Hulu includes programs from networks, including NBC, Fox, E! Entertainment, FUEL TV, SciFi Network and USA Networks. The site's purpose is to be both a promotional vehicle and a revenue generator; it will make money from ads both on the site and within videos.

Click below to see a clip from Hulu, the online video joint venture between NBC Universal (GE) and News Corp. (NWS). (The clip will expire after about five weeks.)

In its first day, Hulu was winning rave reviews from technology-focused commentators on GigaOM, TechCrunch, Silicon Alley Insider and other sites. In the case of GigaOm and TechCrunch, the adulation represented a reversal from their earlier tone –- the founders of the sites had derided the joint venture as "Clown Co.," while also criticizing Hulu's name and its launch delays. From the clip above and others like it, it appears that the site's interface works smoothly. Because Hulu's distribution is limited, however, it's not clear whether site administrators are ready for the crush of traffic that will result when the broader public has the opportunity to find and stream their favorite shows online.

Silicon Valley is paying close attention. Beyond the challenge to YouTube, the clean start for Hulu has implications for Apple (AAPL), which is trying to build a business selling Hollywood video content through its iTunes Music Store. NBC and Apple clashed earlier this year because of the network's desire to have more say over the pricing of its shows. Because of the disagreement, NBC shows are no longer available on iTunes.

To a great extent, Hulu was born of Hollywood's desire to control its own digital destiny. And if Hulu proves to be a success with customers and not just the early reviewers, it could give networks new leverage when negotiating distribution deals with technology companies like Google and Apple.

typical. video is not available to view if your in new zealand (or outside the US of A).

Posted By NZ: October 30, 2007 9:34 PM

I would agree with Jon that YouTube and Hulu aren't direct competitors.

I see this technology as a huge step forward in entertainment delivery, though. I look forward to the day when I can no longer need to have cable TV–just an Internet connection allowing me to view HD content on-demand whether I want to watch it on my iPod, computer, or big screen TV. Give me the ads and keep it free. Needing to watch content at my computer will always be a major roadblock for me at this point, though.

Posted By Brian, Minneapolis, MN: October 30, 2007 2:40 PM

I don't think there's any question that YouTube would love to have Hollywood's content on its site. It's fair to call YouTube and Hulu competitors.

Posted By Jon Fortt: October 30, 2007 10:59 AM

Let me get this straight. I can't download content to view on an iPod or similar device for viewing when I want to. I have to watch adds and I can't upload content.

Nice try.

Posted By mike, london ky: October 30, 2007 10:38 AM

Hulu and YouTube are playing in different realms. Hulu is about 22 minute (and longer) feature content, viewed from a lean back position. YouTube is about (user generated) clips, most of them short, viewed in a lean forward and ready to click environment. They aren't competitors, nor are they solutions. I blog about this and more at http://jburg.typepad.fom/future.

Posted By Jon, NY, NY: October 30, 2007 10:26 AM
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Jon fortt

Jon Fortt
A senior writer for Fortune, Jon Fortt focuses on technology and innovation in Silicon Valley – a subject he's been reporting on since his days as a rookie reporter for the Lexington (Ky.) Herald-Leader. Before joining Fortune in 2007, Jon had reporting and editing stints at Business 2.0 magazine, and the San Jose (Calif.) Mercury News, Silicon Valley's hometown newspaper.
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