1938 Media, the controversial (and hilarious) video blogging site founded by Loren Feldman, has been the center of attention over the last few days. Now big partners are starting to take notice, and Feldman is inking some interesting distribution deals.

The site grew in popularity after Feldman began mixing puppet parody shows into his usual punditry, specifically targeting hyper-sensitive tech industry insiders who were sure to fire back. But those parodies have drawn significant criticism from those targeted as well as a few sympathetic bloggers. In response Feldman agreed to stop some of the harder hitting stuff aimed at social media consultant Shel Israel.

The puppet videos are definitely a hit, however, drawing sponsors and, earlier this month, a distribution deal with CNET.

The CNET deal has yet to go live, and chances are it never will. The recent controversy may have given CNET cold feet. Feldman says the deal is “on hiatus” for now.

But starting today Verizon Wireless’ 3 million mobile VCast users will have access to Feldman’s video content on their phone, as well as 1 million Fios broadband cable subscribers via video on demand. The deal, which will pay Feldman an undisclosed license fee, puts the 1938Media brand next to YouTube, Break.com and other high profile partners.

Effectively Verizon has created a 1938Media channel and has given Feldman the ability to bring in third party video content as well. To start, Mahalo Daily, Revision3, Ze Frank and Jay Grandin content will be included.