As many have mentioned before me, I believe Hulu and YouTube serve very different functions on the Internet.
I really enjoy and appreciate Hulu because it is a legal way to watch television over the internet. I think it is a very positive step for the television industry as a whole to acknowledge they cannot keep people from pirating shows. Therefore, they might as well offer them for free and at least make some revenue. This, however, is Hulu's distinction; it is created, funded and gets it's content from the corporate television industry.
On the other hand, YouTube is by the people for the people. Similarly to Hulu, content on YouTube is free but the main difference is it is all user-submitted video. These include tiny snippets of shows or movies, home videos and fan creations.
Therefore, both sites serve two distinctive purposes in my eyes. If I want to watch an entire episode of a television show in high quality, I will go to Hulu. However, if I want to laugh at something stupid and random or find a quick clip, I will go to YouTube.
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