"We've heard from a very reliable source that Microsoft is all set to unveil "Hulu" as an Xbox Live service at E3 2010. Similar to how Netflix is integreated into Xbox 360 dashboard, Hulu would be there as well, and would require a subscription fee. We've no idea how Microsoft will charge for it, but our assumption is that you'll pay for a block of access time (a month? a quarter?) by using Microsoft Points—but again, that part is just a guess. We also have no idea as to whether you'll get the entire Hulu catalog that's available on web, or if it'll be pared down for TV consumption, despite paying the premium," reports Gear Live.
E3 kicks off in two weeks, and we should know everything when Microsoft's Media Briefing kicks off on June 14th at 10:00 AM PT.