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Hulu is constantly updating their Flash-based video player, but one change they don't plan on making is the addition of an HTML5 video option. The company's VP of products Eugene Wei said in a blog post that, "[HTML5] doesn’t yet meet all of our customers’ needs." He lists a number of reasons for this, many of which point to the callous side of the streaming business. Wei notes that the Hulu player must secure content, serve ads, and control bandwidth.
HTML5 video is seen as the next step beyond Flash by many. It would use a tag to describe a video element to the browser, which then decodes the video directly. This necessarily means the video is more accessible to the end user, making it easier to copy. This is one of the reasons Hulu feels HTML5 isn't for them. Add to that the inability of HTML5 as it stands to serve ads within content, and you can see why Hulu is sticking with Flash.
This course of action will keep devices like the iPad from playing Hulu content for the time being. Though, possible mobile apps could get around that. In fact, that would jive nicely with Hulu's rumored pay model. Do you feel like HTML5 is the future, or will issues like this hold it back?