Video Web site Hulu is developing an iPhone app, according to this report. The application will allow users of the iPhone and iPod touch to stream movies and TV shows via cellular or Wi-Fi connections.
While a Hulu app is sure to become a hit, I wonder how it will impact iPhone service provider AT&T. AT&T doesn’t have a bandwidth limit on iPhone data usage. So if a lot of people start watching video via its 3G network, that could drive up the network’s usage.
One solution would be to impose usage limits, which is what’s already done with PC Web access. Typically, the limit is relatively high: You can watch two standard-definition movies, or one movie in HD per month. I suspect that, for now, most people won’t exceed it, as watching video for a prolonged period of time on a tiny cell-phone screen is painful.