Hulu coming to iPhone and iPod touch (tablet?)

We’ve gotten word that Hulu and Apple are working on a product for the iPhone/iPod touch and possibly an Apple tablet.  While making a Hulu port for iPhone would be fairly straightforward, with Apple’s iTunes selling TV shows through iTunes and AT&T not wanting to break its network any further, it becomes more complex.  Here’s what out tipster has told us:

• The service would be ad-based just like the desktop/browser versions
• The service will utilize Apple’s new variable bitrate HTTP streaming protocol.  The quality will be good but not as good as iTunes versions
• It was originally hoped for release in September but rights issues have pushed the release back into late 2009/early 2010.
• The Hulu app only works on Wifi but it may "in the future" be allowed to run on carrier networks.
• AT&T will offer competing services on the iPhone.  They will coexist.
• There will be ties to iTunes store links.  For instance, if you are watching an episode of Lost, you’ll be able to buy prior seasons from iTunes with one click.
• Hulu is poised for international expansion in 2010.  The iPhone version will expand with the full version
• The app won’t be free