N!NJA sends in word of Hulu's new beta section, Hulu Labs, which is now showcasing Hulu Desktop, a client that runs on both Windows and Mac. The author believes that Hulu Desktop explains why Hulu has been so touchy about Boxee. "This clearly explains why Hulu has been so persistent in blocking Boxee — an open-source media-center application for Macs, Apple TVs, and other devices — from including its content. Since Hulu provides free, ad-based mainstream content from the largest studios and networks in the business, they are under tight constraints imposed by these major players. We have already seen good examples of where Hulu is heading with integrated advertising inside the browser. A desktop client produced in-house will be much more conducive to monetizing Hulu using these kinds of campaigns."