Hulu Plus makes much more sense when viewed as a cable alternative (where there are also ads, but you pay a lot more) than a Netflix alternative. Netflix is going to try to get into the first-run content market, but right now if you don't have cable or OTA TV but want to be able to legally see any shows during their season, for just a fixed subscription fee, Hulu Plus is the option (though sadly it's missing a lot of stuff I'd like to see—I'd gladly pay at least $20 if it covered all the major broadcast and cable channels' original shows).