Why Hulu Is The OPEC Of Online Video

Editor's note: Mark Suster is a venture capitalist based in Los Angeles at GRP Partners . He blogs at BothSidesoftheTable . The formation of Hulu was defensive - designed to stop another YouTube or Napster from emerging and causing disruption to the TV industry. The idea was that if you could put up a consumer site that was seen as the best place to consume content then people wouldn't go to lower-quality or free sites to get it. The founders felt that having a legitimate site for content would discourage Silicon Valley VC's from funding entrepreneurs to create the next big TV killer.