Looks like Hulu is crossing over to the mainstream with the signing of Disney/ABC - the reporting (Slashdot story here) seems to be of the "trouble for YouTube" variety, but I think the cable companies have a bigger problem. They don't like the idea of you watching TV (Hulu, iTunes) and movies (NetFlix, iTunes) online - they want you to pop for the "On Demand" channel. I think a lot of the rationale behind the caps (both the informal ones and the formal ones they have tried to float) trace back to this. Ultimately, the cable company is becoming a pipe, offering a commodity service. That's not a high markup service though, and rolling out improvements that you can charge more for (better bandwidth) cost real money. It's a real dilemma for them.