Hulu probably signed an agreement with say Tivo or Microsoft(360), nintendo, sony, heck even samsung. To do the same thing but have people pay for it and get some royalties. This product only

Hulu wasn't making any money with this. Boxee was full of people who would use Hulu without boxee and see the ads but the Hulu brand and ads wouldn't be connected as clearly as they would be online.

In a recession things like that can fly but when your trying to make money you gotta work for it.