Hulu will have more traffic and total revenue than YouTube by next year. - Inspired by Mark Cuban

In contrast to Youtube's user generated content model, Hulu's content is licensed from networks -- primarily FOX and NBC. The site allows you to watch full episodes of tv shows and entire movies.

While Hulu doesn’t have close to the number of users and videos that Youtube offers, it trumps Youtube on revenue per user and revenue per video. Hulu, unlike Youtube, which is a hosting service, has full rights to offer advertising on the videos shown on its site.

Writes Cuban: “Because Hulu can monetize 100pct of their growing traffic, they should be in a position to pay for the best content available. Not a lot of money, but even with the tiniest of guaranteed payments to producers, they will not only attract better content than Youtube, but they will also increase the cost to Youtube for the content they want most to license. Furthermore, because Hulu knows exactly what they have on the site and can sell 100pct of it, their professional sales force will be in a better position to package and sell bigger and more profitable ad solutions.”

Read his post at http://www.blogmaverick.com/2008/06/16/hulu-is-kicking-youtubes-ass