YouTube has Movies?

I found some interesting news on YouTube the other day, and seeing that it has become more of an outlet to personal videos and comedic clips, rather than actual TV or movie content, this was pretty interesting. Apparently, YouTube has a new agreement with MGM to air a variety of full-length movies and TV shows on the site for free. I find this interesting as You Tube has in recent months lost share to other sites like Hulu, that provide full length content and also offer a platform for Internet advertising.

http://www.nytimes.com/2008/11/10/business/media/10mgm.html?_r=2&oref=slogin&oref=slogin

YouTube is a very interesting company because it is unclear where their source of revenue is, if there is any at all. On the YouTube company information section, it states that "YouTube has struck numerous partnership deals with content providers such as CBS, BBC, Universal Music Group, Sony Music Group, Warner Music Group, NBA, The Sundance Channel and many more."
http://www.youtube.com/t/about. However, it is unclear if there is any financial exchange involved in these partnerships.

Hulu, which may be YouTube's biggest competitor as of late (speculation), has a different approach to offering television and movie content, through:

"Advertising: Hulu gives advertisers an opportunity to associate their brands with premium online video content, connect with highly engaged consumers and extend their reach beyond Hulu.com to Hulu's distribution network. Additionally, Hulu offers and is committed to the continued development of innovative, new advertising experiences."
http://www.hulu.com/about

With the revenue created through advertising sales at Hulu, the site is able to provide higher quality content to viewers at the same cost as YouTube (nothing), and without the personal video content, seems a cleaner and easier to use site.

I wonder if You tube's attempt to air full length films etc. from MGM is the first stage in transforming into a more Hulu like site?