I have a confession: I've been using Hulu since it launched, and I like it. My favorite feature is the the way it notifies me of new episodes of shows by e-mail so I don't have to worry about missing an episode. No single service will be able to offer all content, and I see Hulu Plus and both a competitor and complement to Netflix.
The $9.99 per month Hulu Plus subscription, currently an invitation-only preview, offers 120 full seasons of TV shows, plus many back seasons of shows from ABC, NBC and FOX. Hulu Plus will offers full seasons of shows, instead of a handful of the most recent episodes. Some shows like Lost, The Office, Arrested Development have every episode, while other shows like House and Bones have a season or two. It is fun to scroll through the 35 seasons of Saturday Night Live with more than 192 episodes (SNL used to be funny a long time ago).
The biggest complaint I have with Hulu Plus is the ads. While they're shorter in length than the commercials on broadcast TV, I'm paying a subscription fee and feel that the ads should be removed. This could be a big advantage for Netflix if it bothers enough people.
Hulu Plus is currently available on the iPhone (ahead of Netflix), iPad, Touch, Samsung TVs, Samsung Blu-ray players, and the PS3 (requires Playstation Plus subscription during preview). Hulu has a lot of catching up to do with Netflix as they are well on the way to the goal of having 100 Netflix-ready devices this year.
My request for Hulu Plus hardware support: Hulu on the Roku Player.
Netflix CEO Reed Hastings called Hulu Plus a "potential significant competitor," but for now the battle will be over TV shows because Hulu is seriously lacking movies. While movies are a top-level selection on the Hulu Plus app, they rarely mention movies on the Hulu Plus website, and for good reason. The top 10 most popular movies are: The Ten, Strictly Sexual, For All Mankind, The Age of Stupid, STOMP Live, Super Size Me, An American Werewolf in London, American Shopper, Alexandra's Project, and the Future of Food. Until Hulu expands the movie selection, which I believe they will over time, Netflix is a better value.