Silicon Alley Insider is reporting that a dedicated Hulu App is indeed on its way to the iPhone and should be here in just a few months.

Silicon Alley insider says the application will work over Wi-Fi and AT&T’s 3G network, meaning that users will

 be able to view programming anywhere with a fast data connection.  One of the things that keep this rumor from holding water is that Hulu is in direct competition with Apple’s iTunes business. Users of Hulucan watch ad-supported, full-length television shows and movies on their personal computers for free, instead of paying Apple to download a copy for offline viewing.

Note:  AT&T may bring up their own issues with this App and put pressure on Apple not to allow this App onto the AppStore,  since it will use Loads & Loads of Bandwidth to stream shows  & other videos hence resulting in putting strain on AT&T’s network. AT&T reportedly has used pressure  on Apple before & did this with Sling Media app. We will have to wait & see how Hulu app pans out. 

[via]