I am Keith Hernandez

With MGM agreeing to a deal with YouTube to show full length TV shows and Movies on the video website, we are now seeing an increasing movement from studios to get in on the hot, sweet internet action. For someone who uses his laptop as the only source of watching shows, this is exciting news. Right now, there are not too many options with most only showcasing bit-sized clips. Having a competitor against Hulu could up the stakes on what shows and movies are being acquired and added to each site’s arsenal. And more options means more time spent on the site, which means more revenue generating ads. Should be a win, right?

Hulu has been the dominant destination for people interested in professional content, the shows they are used to seeing on the networks and cable channels, while historically YouTube is the spot to go for videos of cats playing pianos and lip-synching teenagers. YouTube is now moving fast into the acquisition business, cozying up the Studios who have sued them, because they have realized that they can’t monetize videos of adults doing the Supa’ Man in their apartment. Unfortunately, the content the studios are providing YouTube is mostly very old movies that have no chance of being sold as DVDs. This is where Hulu continues to win. By providing key shows like The Colbert Report, 30 Rock and The Simpsons in full online, Hulu has set it self up as the go to destination for humor craving laptoppers looking for prime time entertainment. It doesn’t hurt that Hulu’s UI is slick and easy to navigate.

Right now, advertisers feel more safe aligning their brands with Hulu because they know the content.
It will be interesting to see what other players like Joost, Veoh, and Bebo can add to the fray. The key will be in the acquisitions: there is a very small market of people excited to Critters 3 on their computer. The companies that will thrive will be the ones who can lock up major shows while also providing high quality exclusive programming of their own. Right now, Hulu has the early lead and a strong stable of hit shows that will continue to help increase its share, but YouTube has the Google money behind it to make this an intriguing battle for internet video supremacy.