Hulu has entered 2010 on a high, serving one billion videos in December 2009. And yet the company is facing new challenges, namely how to make the service a profitable one. Paid options are definitely on the way but it looks likely there’ll always be a free option.

Hulu – From Zero To Hero

After a short beta, Hulu launched fully in early 2008 with few people predicting it would become the success it has done. But the last two years has seen the service grow in popularity by a huge amount, with only a slight dip in the middle of last year.

But that trend now looks to have been reversed, with Hulu once again growing. With Disney now on board, and content partners and sponsors increasing in number, things are definitely looking good for Hulu.

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YouTube’s movie rentals trial brought in just over $10,000. But rather than the failure some are describing it as, this is surely a big enough success to warrant a larger roll-out of the service in the future. But as usual, content is key.

YouTube Trials Rentals

YouTube has now officially entered the market for movie rentals, having offered movies from the Sundance Film Festival for $3.99 apiece for the ten days that the festival lasted.

YouTube has had a relationship with independent filmmakers for a while now, as it offers another opportunity for them to get their work out there and in the eye-line of a bigger audience. And audiences don’t come much bigger than YouTube’s.

The trial run has now ended and the results are in.

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SeeSaw, Arqiva’s attempt to create something similar to what the BBC had hoped to do, has now entered a private, invite-only beta. This will last roughly a month, with content deals being thrashed out before the launch proper.

Kangaroo – SeeSaw

SeeSaw has risen out of the ashes of Project Kangaroo, the joint project between BBC, ITV, and Channel 4 that would have seen all strands of British TV brought together in one Web video portal. That was until the Competition Commission killed Kangaroo off after BSkyB and Virgin Media pledged complaints.

The BBC and its partners have gone on to create Project Canvas, a much more ambitious effort that seeks to create a new standard and platform for IPTV in the U.K. Set-top boxes are even part of the plan.

Arqiva bought the Kangaroo infrastructure last July for an estimated £8 million ($14 million).

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Faced with a rapidly-dropping number of subscribers, cable companies are starting to realize they need to embrace rather than fight the Web to succeed in this new digital age. And Brightcove wants to help them, providing the platform which could see content cropping up on multiple sites on the Web.

Cable – Who Needs It?

The cable companies really aren’t keen on the Internet or online video. It’s a sector they don’t control, and currently don’t even have a foothold in.

But the Web is providing a viable alternative to expensive cable subscriptions for many people. Who needs to see a huge fee leave their bank account every month when the likes of Hulu provide content for free (at least for now). Especially with more TVs and devices being Internet-enabled, meaning Web video is moving from computers to the living room.

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YouTube has grown and evolved a massive amount since it launched. It’s even changed owner. And yet 2010 could be the biggest year for change so far. YouTube is already rolling out a new minimalist redesign, and its first ever profits could follow in its wake.

A New Year, A New YouTube

2009 was a big year for YouTube. The site began streaming more premium video content after doing deals with various content partners. It also began looking at pay options, the first of which has now come to fruition.

It also played a big part in the development and launch of Vevo, the music video site run by the record labels themselves. There was also the introduction of full HD, and experiments with a new advertising model.

But 2010 could potentially be even bigger.

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Is the free online video ride coming to an end? After months of hints and speculation, YouTube is experimenting with its first paid content. And Hulu is strongly rumored to be preparing to roll out a metered subscription service for some shows in the near future.

Paid Content

It would appear all media industries are starting to realize Web advertising dollars will only go so far, so the newspaper industry, music industry, and TV and film industries are looking at alternative ways of making the Internet pay.

Both YouTube and Hulu have been rumored to be seeking to add paid content to their line ups for a while, and while the Google-owned YouTube is now experimenting with this in a small way, Hulu is making bigger, more longterm plans.

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Cricket is one of those sports you either love or hate. There’s very little middle ground. Those who love it are in for a treat over the next few months as the Indian Premier League tournament takes place. And all, for free, on YouTube.

YouTube Progresses

YouTube is becoming much more than it once seemed it would ever be. Already by far the most popular online video destination on the Web, serving one billion videos a day, it’s now turning its attentions to professional content as well as the bread and butter of UGC.

YouTube has already done deals with a number of media companies which have added movies and TV content to the site. Channel 4’s 4oD being a prime example. Sporting events are also now being added to the roster.

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