questionswhat is the hulu online video service?

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It's about the same thing and same price as Netflix except that it is focused more on current TV shows and less on movies whereas Netflix focuses on more classic TV (or non-current shows) and movies. If you are into the newer shows and don't want to watch them on regular TV, Hulu might be a decent option. Hulu also has a lot of classic TV shows and some movies.

One other thing, Hulu shows have ads (a limited number) and Netflix does not have any ads.

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It is also partially free. It has a variety of free shows. They are mainly the ones that were on TV most recently...

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Also, Hulu is run by space aliens that look like Baldwins and are in it for our brains.

(I happen to be watching Hulu as I type.)

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It is possible to block the commercials if you want. I use AdMuncher, which paid $oftware, but I believe there are freebies that work too.