Hulu Says Veoh Is Violating Terms Of Use But No Sign Of Action — Yet

Veoh wants to have it both ways: legit distribution deals with the likes of CBS (NYSE: CBS) and guerrilla tactics to showcase NBC and Fox content from Hulu. Prison Break, Heroes and other other prime-time shows, as well as episodes from Hulu’s catalog are on Veoh now without any agreement. Beyond the embedded versions, which use the Hulu player, Veoh also is making full download episodes available through its own player VeohTV although the source of the two episodes I tried didn’t appear to be Hulu. (A Veoh spokesman says none of the VeohTV downloads come from Hulu.)

The News Corp.-NBCU JV is still in private beta as a destination site — although that could lift as early as this week — but shows also are being distributed through a partner network that includes AOL (NYSE: TWX), MySpace, *Comcast*, MSN and Yahoo (NSDQ: YHOO) via a Hulu video players skinned for the various sites; beta users can post embedded video ranging from clips to full TV episodes or movies on their own sites. Hulu’s standard statement when the Veoh use became public late last week: “We encourage the viral distribution of Hulu content in accordance with our terms of use.” When I asked if Veoh was within the terms of use, a Hulu spokesperson replied: “No, this doesn