We love ours and have it instead of cable. We actually have two - one in the living room and one in the bedroom. You have to have subscriptions for Hulu and Netflix to watch them. They don't download to the box, they stream directly when you select them to watch. Netflix remembers where you are if you pause a movie/show.
There are also some free channels (we like the Roku News Channel they have). You can also view your facebook photos, stream music from Pandora, etc.