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When I watch Hulu I expect ads, but when I watch YouTube I don't - having to watch an ad before a video implies some quality to the video, whereas YouTube is often hit and miss - it's the expectation they've built up after so long hosting fairly short, amateur content.

It will be interesting to see if YouTube can keep viewer expectations satisfied as the ad-videos become more common, or whether a site that never has ads will take the market for short videos.