I’ve written articles over the past few months about how to cut down on your cable or satellite bill.  Apparently many others have taken note of the how-to’s via articles on websites.  But it was recently reported that about 800,000 American households have canceled either their cable or satellite subscription.  With the evolution of Hulu, iTunes, and even Fancast, it is very easy to watch pretty much any of your favorite show online.

Analysts are projecting that by the end of 2011, that 800K will double.  While that still might only represent less than 1% of the market share of the television industry, it is a small sign of a potential shift of things to come.  Compound that with the growing 3G networks and the higher-speed internet, streaming onto a computer is very easy.  Let’s face it, times are tough.  We want the most bang for the buck along with being able to watch programming whenever we want.  Sure you have to watch some shows like Lost or 24 the night of airing because of the following morning water cooler talk.  But really, is that really worth $90 a month?  I don’t think so.

If you’re a cable or satellite provider, the less than 1% loss isn’t really that alarming.  Recently both satellite giants posted a rise in subscriptions so I’m sure that they’re doing alright.  But they’re going to have to figure out ingenious ways to market the necessity for having a television subscription.  For the most part, you still have to watch sports on television but more sites like ESPN360 and the NCAA March Madness are popping up.  It’s a double-edge sword because on the one hand, the leagues are expanding because of the ease to online access, but that’s also detrimental for satellite providers.

There’s a dark storm approaching at it’s not 2012.  Hulu’s free online days are numbered.  This past week, The Daily Show and The Colbert Report were yanked from the website in a dispute over ad revenue shares.  If there’s one thing we can’t stand, it’s about Hulu, it’s those 30-second clips of “donate to Haiti” or the “Sprint Now Network”.  Either the two sides could not come to an agreement on how to divide the ad revenue up or it was simply just not enough revenue coming in from those ads.

Yes, while we all like the words “free” and Hulu to be used in the same sentence, I am pretty ready to pay a small charge to use the site.  Some say that charging for videos will turn viewers off, and I’m sure it will.  But look at iTunes and how successful they are.  Analysts are saying the next step for Hulu will be to bring exclusive and pay-per-view content like HBO and Starz shows, something like how Fancast is doing.

I can see how Hulu is struggling to make revenue and even turn a decent profit.  Nothing pays the bills like live TV commercials and online ads just simply don’t cut it.  And after two of the most popular shows have now exited, this could be a precursor to other networks leaving.  FX is slowing backing out…they only upload episodes weeks after live airing and now don’t even show Nip/Tuck on it anymore.  One thing is for certain, Hulu needs a not only a drastic change, but also one that will still have online viewers stick around.

The great Hulu experiment continues as NBC Universal’s TV head, Marc Graboff will continue to tackle other business models consisting of subscription-based content and an up-tick of advertising. Hulu, which debuted in 2007, does a great job by exposing viewers to content they may not watch on traditional TV. Like any business, its job is to also make money for its owners which, sadly, is not happening.

“Now the trick is … to turn those digital pennies into digital dollars,” says Graboff. “Hulu has got to bolster its economics. I do think Hulu is experimenting with different models. I know they’re looking at any number of things, like adding inventory (more advertising) or creating a subscription model with different windows. They’ll eventually get it.”

Graboff was at the Digital Hollywood conference in Santa Monica and he went on to say that NBC’s investment in Hulu was the right step. He also admitted that the video site’s content owners have had lukewarm feelings about which programming they want to add for online viewers. The biggest concern is content theft and piracy. “Our research indicates that making shows available online has not cannibalized but has been additive,”Graboff added. Hulu’s owners are made up of General Electric Co‘s NBC Universal, News Corp’s Fox Entertainment and Walt Disney Co’s ABC.

Comcast CEO Brian Roberts recently spoke at the Web 2.0 conference in San Francisco. In an interview with Federated Media CEO John Battelle, Roberts seemed to understand the drive to online viewing. So much so, Roberts will continue to drive Comcast toward aggressively investing in further expansions in higher-bandwidth for consumers. Don’t expect the cable-leader to bust its tail just for Hulu. Comcast will officially launch Fancast.com which will feature content not available on rival-Hulu by the end of the year.

Also at the Web 2.0 conference was GE Corp. CEO Jeffrey Immelt who, surprisingly, gave a thumbs up the burgeoning online viewing platform. He revealed that his 22-year-old daughter uses Hulu for all her programming and that controlling TV content might be futile. Immelt’s favorite shows on Hulu? The Office and 30 Rock.

Now where’s American Idol?