A showdown between Hulu.com and the 3-year-old YouTube was inevitable. Although Hulu is accessible to audiences in America only, it has gained as much in advertising dollars as YouTube in a span of just one year.

The ‘less-than-10mins-video’ concept seemed to have spread like wildfire but hasn’t resulted in any profits for YouTube. Which is why the company is now moving to professionally developed content.

Although YouTube is starting with with some studios and smaller films, the future clearly will be about full-length TV shows and feature films.