Chalk this up as a rumor for now, Gear Live (external link) is reporting that they have an awesome source (who has never been wrong) that Microsoft will announce at E3 the partnership of Hulu and XBL.
Not only will Xbox Live have Netflix, Facebook, Twitter, and Last.fm integration, but will also provide the Hulu service for their users as well. Gear Live is reporting that there will be a service fee and believes this could possibly be paid through Microsoft Points. I am curious to see if Hulu will do what Netflix has done and offer a cheap subscription fee to provide access for users on their 360.
Hulu provides clips from ABC, CBS, NBC and their affiliates to users to stream on the internet at their leisure. Most television shows appear on Hulu 24 hours after their original air date and have minimum commercial interruptions (which is a bonus).
Now just to get ESPN to start streaming their games live through my Xbox.
DK EDIT — Let me add this, to clear up any confusion right now, Microsoft will not be the party charging you to use Hulu — Hulu is. Hulu has long been rumored to start a charged service (see — http://tinyurl.com/2b59kfq
). As was pointed out in the Gear Live article, rumor had it that Apple's iPad would be the first to use the service. It appears that Microsoft will beat them to the punch.