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Although YouTube and myspace got on the embedding bandwagon, I see it primarily used for the "Hey, look at this cool clip, dude" and "Take a look at what I made!" amateur audience, which provides a moment of amusement but is quickly discarded and forgotten in a world of sensory overload.
Hulu brings with it a new level of quality, and I foresee the emergence of a new generation of content partnering, which ultimately will be what drive's Hulu's success by extending frequency and reach into all corners of the internet. I cite one reason I think the old Airwolf show emerged at the top of the ratings - http://series.airwolf.tv (part of fan site www.airwolf.tv) - which delivers the content directly to those who are most inclined to take an interest and pairs it with extra content that keeps the visitor's attention long enough to score a residual for all involved.
This, I think, is the real value of what Hulu offers, and will drive an increasing amount of content as website authors continue to figure out how to leverage Hulu for mutual benefit.