Disney has joined News Corp (Fox) and NBC with an investment in video Website Hulu.com.  The three entertainment companies now each own 27% of the business, with the reminder held by private equity firm Providence Equity Partners and employees.

Disney and ABC programs such as Lost will now be added to the Hulu program roster, adding to the number of shows that are legitimately distributed online by Hulu.  While Hulu is still a tiny fraction of the size of YouTube, it is rapidly growing more important in the online distribution of new content from entertainment companies. 

And it represents a controlled alternative to the wild west of YouTube, providing Disney and the other content companies a way to offer advertising-supported content in an environment in which their IP rights are respected in the way they’d like.