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My last post argued that disruption in online video was likely to come from someone outside the industry. Yet, consummate industry insiders NBC Universal and Fox seem to be on the right track with their online video offering Hulu. How could that be? The companies have structured in a way that has helped them "forget enough of the core television model to position their new venture for success.

Fox (like FX a part of the News Corp family) and NBC (who also owns the Bravo, USA, and Telemundo networks) formed the joint venture last year. The strategic aim? Help ensure that the companies avoid the fate suffered by their cousins in the music industry, who let Apple capture the lions share of the value in the digitization of music.

When NBC and Fox formed their venture, most industry watchers were appropriately skeptical. Incumbents struggle enough on their own to formulate winning disruptive businesses; asking two incumbents to work together to create a disruptive business seemed like a recipe for disaster. Even the ventures name earned ridicule.

Yet, after a few twists and turns, Hulu appears to be on a path that might yet promise success

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