Antonio Esposito and I have been talking about Hulu and if they can manage to hang on. I'm calling it: Hulu will survive, by providing content that others cannot or do not. I say this because Hulu recently acquired the Criterion Collection, which is famed for their interesting, wonderful, often-foreign indie films. This is probably the best move Hulu could have made, since otherwise Netflix will probably outcompete with their free and fast streaming of so much content.
Hulu's best move is to add other exclusive content, especially niche things (more Korean soap opera, British sitcoms and dramas, Swedish movies, Canadian teen dramas, Indian musicals.)