Hulu Online Video Service

Since Hulu launched early last year, its popularity has quadrupled as millions of people turn to the free online video site to watch episodes of such television shows as "Family Guy," "The Office" and "Modern Family." Some wonder how long the free flow of online video would last if Comcast Corp. ends up a part owner of Hulu. The nation's leading cable company has made no secret of its disdain for Hulu's approach of giving away the shows that Comcast and other pay-TV distributors spend billions for -- and rely on to retain subscribers.

Online video site Hulu trumpeted its ascension to the media big time a few months back with a dash of sardonic humor. In its debut TV commercial, in which Alec Baldwin mocks the audience's addiction to the very shows he creates as a fictional network executive, the site calls itself "an evil plot to destroy the world." The joke is uneasily close to the truth for some in the television business. Once dismissed as "Clown Co."

Walt Disney Co., signaling a dramatic shift in its Internet strategy, is negotiating with longtime media rivals to take an equity stake in Hulu.com, the fast-growing website where users can watch movies and TV episodes for free. In exchange, Disney would provide episodes of ABC shows to Hulu, significantly broadening the program offerings to include such hits as "Grey's Anatomy" and "Desperate Housewives."