It’s sad to see a company that we were all so excited about fade further into oblivion. Today Joost, one of the most anticipated startups in 2006/2007, is just an also ran in a sea of big online video sites like YouTube and Hulu. Today CEO Mike Volpi stepped down, the company is laying off most of staff, and refocusing the business to “white label online video platforms for media companies.”

Om has a good monday morning quarterback overview of why they failed, but to me it comes down to just a few things. They over funded ($45 million before they even launched) and they ignored the fact that users were quite willing to sacrifice quality in online video for the convenience of Flash in the browser. Joost waited until late last year to go all Flash - until then users had to use the downloadable Joost software and allow P2P streaming of shows. In the meantime there was no linking to Joost videos. YouTube and Hulu got all that social media and SEO juice that could have gone to Joost.

Founders Niklas Zennstrom and Janus Friis, who founded Skype and Kazaa, see the world in terms of P2P and downloadable clients. The joke about how everything looks like a nail if you’re a hammer is very true with Joost. But what worked with Kazaa and Skype a decade ago doesn’t work with online video in today’s world, obviously.

YouTube has launched a new directory for movie trailers. While YouTube has had movie trailers on its site from distributors in the past, Google’s video-sharing site has launched a new channel where official trailers are organized by “Latest,” “Popular,” “In Theatres,” and “Opening Soon.”

Apple’s movie trailer platform has long been the most comprehensive and popular site in distributing online trailers. Hulu also provides a good amount of trailers on its site. Recently, YouTube launched a premium section with movies and TV shows from Crackle/Sony Pictures, CBS, MGM, Lionsgate, Starz, the BBC, Anime Network, Cinetic Rights Management, Current TV, Discovery, Documentary Channel, First Look Studios, IndieFlix, and National Geographic.

As we all know, advertising has been a tough nut for YouTube to crack. While a lot of videos feature overlaid ads at the bottom, some have been testing in-stream video ads that run before, during and after videos. Today, YouTube is starting to test a new way for users to interact with those ads.

On a “small percentage of videos,” you will now have the option of watching one “Promoted Video” (a video someone is paying for YouTube to promote, so yes, an ad) at the beginning of the clip, or choose to see a few different in-stream ads throughout the clip. And if you choose the one long clip beforehand, you will get to choose which clip you watch. Unfortunately, “none” is not an option.

We’ve been hearing for some time (starting with an ex-Youtube employee) that the number of video streams per day reported by Comscore, Nielsen and other metrics services way under-report on Youtube’s total video streams.

It’s hard to compare apples to apples, though. Recent Comscore data says Google/YouTube streams just under 7 billion videos per month in the U.S., up from around 5 billion/month late last year. That’s about 225 million streams a day, which still puts them well above all the next major competitors (MySpace, Hulu, Yahoo, Viacom, Microsoft, etc.). Nielsen says Google/YouTube streams 5.5 billion videos/month in the U.S.

But the real number of streams/day, we’ve now confirmed with a source at Google, is above 1.2 billion/day worldwide. That matches what we’ve heard from other sources. That pretty much means everyone on the Internet, on average, is watching one YouTube video per day.

There’s no question that Hulu has firmly established itself as one of the dominant video sites on the web. But its incredible growth seems to be dropping off, and quickly. Between January and February of this year, the site saw a 42% increase in unique U.S. visitors and 33% increase in streams. Between Feburary and March, it moved up to become the third most popular video site in the US, with a 14% growth in uniques and a 20% growth in overall streams.

The latest comScore data for Hulu, which covers the month of April, reports a much more modest 4.4% growth in overall streams, from 380 million streams in March to around 397 million in April. And its unique visitors actually went down month over month, from around 41.5 million in March to 40.1 million over the same time span.

Earlier this morning we stumbled across Hulu Desktop, an impressive new application from the popular video portal that lets you use your remote to control your Hulu experience. As it turns out, Desktop is only one of a set of new features Hulu is launching today as part of Hulu Labs, which is now live.

First, there’s Time-Based Browsing, which is the feature I’m going to be using most (aside from Hulu desktop). This allows you to see all new Hulu videos sorted by the day they appeared. Before now you could always sort individual shows in order, but if you missed a night of prime time it was up to you to figure out which shows you’d missed. Now you can just jump to that date under Time-Based Browsing and Hulu will do all the work for you.

Since launching in late 2007, Hulu has done one one thing very well: it lets you watch your favorite TV shows and movies from your computer, free of charge. But aside from improving the user experience with assorted niceties like smart thumbnails, improved navigation, and social features, the site hasn’t really done anything extreme to expand its functionality. That changes today.

One of my only long standing gripes with Hulu was that it could never really replace the TV watching experience simply because you had to sit in front of your computer to control it. Boxee was the perfect solution to this, as it allowed you to control Hulu via remote through a very snazzy media center interface. But Hulu has repeatedly killed that functionality, largely at the behest of its major network investors.

There are few web services hotter than Hulu these days. It’s about to surge into the number two web video position (behind only YouTube) and it just signed a deal with Disney to give it even more great content. It’s all great — if you live in the U.S.

Outside of this country, if you’ve wanted to access Hulu, you’ve either been out of luck, or had to use a proxy server workaround. For several months, there were quite a few options that would work to trick Hulu into thinking you were trying to access it from within the U.S. even when you were not. But Hulu got smarter and started doing geo-checks at the streaming level. But still, a few virtual private network (VPN) creators like Hotspot Shield would get the job done by making your IP anonymous. Not anymore.

Hulu has just released the latest in its series of star-studded ads, this time featuring Dennis Leary in a spot called ‘The Leary Mission’. He plays an alien trying to turn humans’ brains to mush by watching TV online. In the ad he gives the following instructions: “Now I need you to take your stubby little human fingers and hit this button on Hulu. Then you can share those TV shows on your bliggety blogs and your Facey-spaceys and your Tweety pages for all of your bookwormy anti-Boobtubey friends.” How could we resist putting the ad on our own bliggety blog.

(Video after the jump).

As Hulu continues its spectacular rise (it is the No. 3 video site in the U.S. and is closing in on No. 2), it just got major buy-in from yet another major media company. Disney is now an investor, joining News Corp and NBC (along with private equity firm Providence Equity Partners). Each of the three media companies now reportedly own 27 percent of Hulu.

As the initial exclusivity for NBC and Fox content expires, Hulu will be adding Disney/ABC videos and TV shows to its distribution mix as well. Hulu is becoming the preferred distribution channel for the big media companies. And it is succeeding in attracting the fickle Web audience. This should worry YouTube, which is still casting about for a business model that will pay for its enormous storage and bandwidth costs. The media companies cannot ignore YouTube just yet, but by strengthening Hulu they can give it their best content first.

Just last month, we wrote that Hulu had gained some 10 million viewers to become the fourth largest video portal on the web. Now, it’s slain another rival to the list: Yahoo, to move into #3 — at least in terms of videos viewed.

To be clear, the new March U.S. numbers released by comScore show that Hulu is still slightly behind Yahoo’s video properties when it comes to unique viewers. But the NBC and Fox-backed Hulu should pass it any day now in that category as well. Meanwhile, the number two player, Fox Interactive Media (which runs MySpace), is slipping just as quickly as Hulu is rising in videos viewed. It could well be as soon as this month when Hulu moves into the number two web video position.

Hulu CEO Jason Kilar sits down with Sarah Lacy on Yahoo Tech Ticker. The first and second segments are now up.

In the first segment, in response to Lacy’s question about why Hulu removed its content from the popular Boxee service, he talks about his need to juggle the needs of his three customers - networks, viewers and advertisers. The networks must be kept happy to make sure Hulu is around for the long term, he says, and this move was made to keep the networks happy. Kilar also addressed rumors of NBC pulling out of the joint venture.

Kilar talks about Hulu’s business model in the second segment. He won’t disclose revenue but says the company is ahead of plan. Analysts say the company may have made as much as $65 million last year on the back of advertising that sells at much higher rates than YouTube commands.

Ask people what their favorite website is, and increasingly you’ll hear Hulu (at least in the US). The NBC and Fox-backed online video service just kicks ass when it comes to content, interface and overall execution. And now it’s apparently going to attempt to translate that into a kickass iPhone app, according to Business Insider.

Sure, there are other iPhone apps that offer video streaming such as Joost, i.TV and TV.com, but none come close to Hulu in terms of content and pubic appeal so far. But the most interesting part may be that the Hulu app would apparently work over 3G connections, as well as WiFi. The current crop of video streaming apps are mostly confined to WiFi usage — no doubt at least in part because AT&T doesn’t want streaming video clogging the pipes.

Free entertainment hub Boxee keeps on getting better and better. A couple of hours ago, the venture-backed startup released a full API that allows developers to build applications for the open-source platform using a set of API calls in Python and writing the GUI using XML. At the same time, the company is laying the groundwork for a richer App Box, which it refers to as an open application store where they are not the gatekeeper (like Apple for its iPhone App Store) but rather a facilitator.

Heck, they’re even prepared to act as middleman for connecting freelance web developers with companies looking to leverage their API. Hard not to love that type of company.

Boxee is today also introducing a new test version of the Boxee alpha version for Mac and Apple TV (get it here for Intel Mac OS X 10.4+), adding two applications that were built using the brand new API. The new Boxee alpha comes with a lot of music goodness as it includes both Pandora, the popular music streaming service, and RadioTime, which enables their users to access over 100,000 traditional radio stations from across the globe.

Live video on the Web is starting to take off, judging by the massive jump in traffic that Justin.tv is witnessing. According to comScore, the live video site’s global audience saw a massive jump from 9.3 million unique visitors in January to 15 million in February, which is about the same number of people who went to Veoh and nearly twice as many as visited Hulu.com. Of course, Hulu is only available in the U.S., where it is fourth most popular video site, and its videos are watched on other sites as well. In the U.S., ComScore only shows Justin.tv attracting 1.4 million people in February. So most of its audience and growth is global, with particular strength in Spain, Brazil, Germany, and the UK.

Quantcast, which directly measures all three sites, shows a similar trend. Globally, Justin.tv has 22.1 million monthly uniques, compared to 15.8 million for Hulu, and 11.9 million for Veoh. While the U.S. numbers are 3.9 million for Justin.tv, 14 million for Hulu, and 4 million for Veoh. (Ustream.tv seems to be the second-largest live video streaming site with 6.7 million global monthly visitors and 1.4 million in the U.S.). These are all site numbers, Quantcast also measures “network” numbers which presumably includes videos embedded elsewhere, and those are about double the site stats for each service. Justin.tv itself claims 1,800 percent year-over-year growth in unique visitors based on its internal Google Analytics numbers.

Hulu jumped two spots to become the fourth largest video site in the U.S. in February, according to the latest data from comScore VideoMetrix. Hulu drew an audience of 34.7 million people who watched 332.5 million video streams. That is a 42 percent increase in unique U.S. visitors, up from 24.5 million in January, and a 33 percent increase in streams, up from and 250.5 million streams.

In a single month, Hulu overtook Viacom and Microsoft in total viewers and video streams (see January data). And Hulu is catching up to No. 3 video site Yahoo, which streamed 353.5 million streams in February. Fox Interactive (MySpace) was No. 2 with 462.6 million streams. And YouTube once again blew everyone else out of the water with 5.3 billion streams.

Hulu has just posted the latest addition to its ads detailing its plans to “turn our chunky brain matter into creamy goo” and take over the world. Family Guy’s Seth MacFarlane has joined the cause, lending some of the show’s most well known voices to promote the popular streaming video site in the amusing ad embedded below.

Hulu’s ad campaign is funny, unique, and potentially very important to its long term success. The site is currently the clear leader in streaming full-length shows and movies, but as the same content becomes ubiquitous on sites like Sling.com and CBS’s TV.com Hulu is going to have trouble differentiating itself. Its slick interface has already been knocked off a few times, and it’s hard to add major new features to a site that is dedicated to primarily watching video. So they’re recruiting major stars to ensure that Hulu’s the first one you think of when you get the urge to rot your brain a bit. And it seems to be working.

Don’t count out Joost just yet. We recently wrote it still has a heartbeat despite the fact they made the wrong bet years ago by underestimating the power of the web for watching videos. They finally switched to Flash late last year, giving up on P2P, and introduced some social networking features around the video viewing experience to battle established players like Hulu, TV.com and YouTube.

Now it’s taking a step beyond that by forming an alliance with Europe’s leading social networking service, Belgium-based Netlog, theoretically expanding its reach to 40 million people. The deal will allow Netlog’s audience to access Joost’s video library straight from its starting page, where they’ll be able to view, share and comment on 57,000+ music videos, TV shows, etc. Activity will be pushed to users’ news feed, a feature Netlog copied from Facebook like many other community services did after its enormous success became obvious.

Everything comes around full circle. First we had Joost, Babelgum, Veoh, and others create standalone client software for watching online videos, but the ease and ubiquity of watching directly in the browser trumped whatever technical benefits a standalone client provided. The rise of YouTube, and more recently Hulu, proved that. But now that watching videos on the Web is something many of us spend an increasing amount of time on, the idea of a better viewing experience through a download client may now be making a comeback.

Hulu, in particular, now has an upgraded, if unofficial, desktop app in MyMediaPlayer2. Developed by Paul Yanez, this video player is more of a demonstration app than anything else, but it is still quite functional. MyMediaPlayer2, which was recently released, is an Adobe Air app which features 400 TV shows and 208 movies from Hulu. You start with a grid view, which resizes depending on the size of your screen and the window. The larger you make the window, the more thumbnail TV show icons appear in the grid dynamically. When you click on a show or movie, it then takes over the top half of the screen, with a list of other episodes below with the date, description, run-time, and a thumbnail. There is also a full-screen mode that works with a remote and allows for a ten-foot viewing experience. The app also includes Twitter integration. Now the whole world can know every time you are watching an episode of The Hustler.

We broke the story of Hulu pulling the content plug out of TV.com earlier this week, and two days ago we also reported that content owners forced Boxee to stop streaming Hulu content as well. Now the owners of TV.com, CBS Interactive, have responded with a message that sparked the Wall Street Journal to headline an article on the reaction “CBS Strikes Back at Hulu”.

What did CBS Interactive’s statement say?

“CBS Interactive is well within its rights to stream Hulu video content on TV.com under its agreement with Hulu. We are evaluating our next steps at this time.”