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The official beta launch of Hulu.com today, the partnership between NBC Universal (GE) and News Corp. (NWS-A), speaks to the issue of who it is they really threaten. Beta refers to it being in a testing mode, for those not familiar with the term.

Hulu.com offers full-length TV shows and films that people can view online for free, via an ad-supported business model.

Many on the Internet have tried to make it look like they're trying to challenge YouTube, but when you think about it, it's probably not the purpose at all. The idea of a battle between traditional media and new media always makes good press copy, but in this case it's mostly wishful thinking.

So who is it that will be more threatened by Hulu? It's probably the cable and satellite TV industry.  
 
YouTube wasn't ever a threat to the major media film and TV industry because it wasn't its main purpose to show professional video; and it still isn't.

For cable and satellite though, this is the first true competitor that has the potential to threaten their business model. It'll take time for it to be a threat, but this is the first truly big salvo in the battle.

As Forrester Research analyst James McQuivey says, "It's time for cable companies and telco TV providers to go on fear watch. As consumers get more access to their favorite TV shows and movies through their Internet connection, they're going to start asking themselves why they're paying their cable bills."

There is absolutely no doubt that TV and film will eventually be watched primarily by Internet distribution. Once enough content is online, it'll be a matter developing a simple device to transfer the content to the Television set. There are of course already these types of devices, but they'll have to be simplified. Most of that effort and cost won't be committed to until quality content in large amounts is put online. It's really not that far away before this all happens.

Cable and Satellite content providers are going to have difficult times in the years ahead, as the transition takes place.