Kurt Scherf, principal analyst at Parks Associates, told me consumer behaviors indicate they prefer a one-stop shopping experience when it comes to watching online video, as opposed to clicking from site to site. I suggested that in that case, YouTube has an advantage over Hulu thanks to the number of users who upload their own content to the site, but Scherf disagreed. “That’s not necessarily a competitive advantage over sites that offer specifically premium content,” he told me.

According to Scherf, consumers are likely to migrate towards a single site, like Hulu, where they can watch their favorite television shows. “We’re going back towards a more walled-garden version of the Web [like portals in the early days of the Internet] in that sense,” Scherf told me.

Scherf believes there’s going to be even less room for a third competitor like Joost or even Fox going forward, in which case the battle will increasingly pitch YouTube against Hulu for which garden party consumers will prefer to attend.

From the article, "Is Hulu Overtaking YouTube?" by Michael Hickins

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