I've spent the last couple of weeks doing some experimenting with streaming. Here's my report.
First, I performed a speed test on my broadband connection. It's 28 Mbps. That should be more than fast enough for any streaming video. Netflix requires 0.5 Mbps and recommends 1.5 Mbps. 3.0 Mbps is recommended for DVD quality, and 5.0 Mbps is recommended for HD quality. Hulu has similar requirements and recommendations. It's also an amazingly stable connection; despite my laptop having occasional issues connecting to the wifi, I've determined that it's not a problem with the connection itself, since iPhones are always able to connect to the wifi with no problems at all.
I currently have a Netflix DVD plan, and as such, they do not allow me to have a free streaming trial, so I haven't tried their streaming on my current setup.
I have, however, been trying Hulu extensively. First I tried a one-week free trial of Hulu Plus, the pay service, using my PlayStation 3 and HDTV. Their selection is disappointing, not worth paying for, at least for the shows and movies I'm interested in. (Although having Criterion Collection movies is a big plus.) Obviously this will vary person by person, going by their interests. The quality of the streaming video, frankly, sucks. It's constantly stopping to load and buffer the video. I wondered if the issue was with my connection, but I tested it by connecting my iPhone to the wifi and loading up websites, and the iPhone worked perfectly and quickly. I'm sure that Hulu would lay the blame at the feet of my ISP, but I lay the blame on Hulu. (By the way, the PS3 is connected via Ethernet cable, not wifi.) Other problems: first, many shows were labelled "web only," meaning that they could only be played on a computer, not on a TV setup with a PS3, Xbox, or Roku box; second, with Hulu you get ads no matter what, even if you pay for Hulu Plus, which is unacceptable to me.
After cancelling the Hulu Plus free trial, I experimented with the regular (free) version of Hulu on my laptop. The selection is even more limited, with many movies and TV episodes available only on Hulu Plus, although newer episodes are typically available for free before migrating to the pay service after a short set time. (I've also heard of content being available for Hulu but not Hulu Plus, which is bizarre.) The quality of the video is no better than it was on Hulu Plus using the TV (usually just below DVD quality; it should be better, especially with newer shows) and I've had the same problems with video stopping to load or just stopping altogether forcing me to completely start afresh. I've also had problems with Shockwave crashing, which may not be Hulu's fault, but it's another black eye for streaming in general, one more stupid problem that must be tolerated.
I don't like watching movies or TV shows on a computer screen, so I've also experimented with hooking the laptop up to the HDTV with an HDMI cable. This started off wonderfully. I was easily able to find clear instructions online on how to manage the video settings when doing this, and I initially had no problems with it at all. But the last couple of times I tried it, I had nothing but problems. Video would go to the TV but audio would still only come from the laptop speakers, and the Full Screen option on the browser video player would revert, by itself, to the smaller version. I searched online for solutions to these problems from tech geeks, but none of them were of any help.
I've also tried Crackle on my PS3 and HDTV. It offers free streaming movies and TV shows, with advertisements. The selection is slim, and they only offer Sony-owned content, but it's free and there's some decent stuff available. The last time I looked, I saw episodes of TV shows like Dexter and Married with Children, movies like Bad Lieutenant, S.W.A.T., Screamers, and Punisher: War Zone, playlists of multiple Godzilla and martial arts movies, and behind-the-scenes promotional videos for newer movies. I've only watched one movie (It Might Get Loud) on Crackle from start to finish. The ads were annoying since they would repeat the same ones over and over, and the video would, as with Hulu, occasionally stop to load (although here the sound would keep playing).
I've tried streaming episodes of Ink Master on the Spike TV website, but I encountered almost the exact same problems I did with Hulu. My best results have been with the CBS website. I've streamed episodes of Elementary after missing them on broadcast TV, and old episodes of Perry Mason (Season 1 and 2 are on the website in their entirety, for free and without advertisements). I haven't had a single problem with any video on the CBS site.
Overall, my verdict is that streaming blows. (The sole exception being CBS. What are they doing right that everyone else is doing wrong?) Even in the extremely rare instance that a TV episode plays from start to finish with no problems (this has happened exactly once with me, again with the exception of CBS), you're constantly being distracted by worrying about when the video will start to screw up. It's also not very fun never knowing when a movie or TV show will be pulled because of licensing issues; content is constantly expiring, and you're always stuck with whatever the streaming service has for you at the time. I've basically given up on streaming (expect CBS), and will stick with broadcast TV and DVD. I'm willing to just pay the money for DVDs, considering I know that they'll play correctly every time and without constantly stopping to try selling me food or clothing or insurance or God knows what else.
By the way, I recommend reading this blog entry from film critic and historian Stuart Galbraith IV, A Special Report: Streaming, Physical Media, and the Future of Home Video.