Hulu's business model has been pretty straightforward thus far: offer free and paid tiers of services with ad support and get it out to as many different devices and platforms as possible. However, a New York Post report claims the Hulu is working with Fox (one of its main owners) to require users to authenticate themselves by proving they subscribe to a pay-TV provider (such as a cable or satellite company). Much as you can't use HBO Go on the Xbox unless you enter your cable provider details, you wouldn't be able to use Hulu without similarly proving you were signed up for a paid TV service. The Post wasn't clear as to what this meant for the Hulu Plus service, as this would make the service useless for those looking to cut their cable service. It also said that this move "could take years" to complete — so Hulu users shouldn't worry just yet. Indeed, we'd have to see this before we believe it... it's hard to imagine such a move doing anything but enraging most of its userbase, and we wouldn't expect those who've cut their cable in favor of Hulu to change their strategy.
If this is true, I'm definitely dropping Hulu and you can probably kiss Hulu's business good-bye.