You pay the same as netflix, but get ads anyway?
This gets brought up all the time, and I'm not sure I understand it. Why would you pay for a thing that will still expose you to ads? Like any number of websites on the internet? What about radios? Magazines? Newspapers? Or good ol' cable television? A lot of people are willing to put up with the ads on Hulu because it provides what they want: the ability to watch a lot of current shows on their own schedule. Heck, the free version provides limited access in exchange for you watching ads, which seems like a fair trade to me.
Sure, you could use a DVR to get roughly the same thing (watching things on your own schedule), but you still have to wait until they air, make sure the DVR recorded it, that it's not full, and if you want to catch up on something, you have to wait until the repeats are aired again. Or you could go to Hulu and dive through that show's archive. At your convenience. From almost any place in the US with a broadband connection to the Internet. All nice and legal. Even with commercials that's hugely convenient.
Netflix and Amazon Prime Instant Video are great options, too, since they don't show commercials. But they don't have complete overlap with each other, and aren't quite as current, and I might miss out on some first-run stuff like Game of Thrones until those boneheads get their licensing / DVD releases straightened out, but I can wait. Paying for all three is still cheaper and more convenient than all but the most basic traditional cable subscription in my neck of the woods, and I have access to enough stuff that I can find something to watch, when the urge strikes me, for the foreseeable future.