What is it? A TV (and movie) portal that looks more or less like every other TV (and movie) portal on the Web: Hulu, TV.com, Sling.com, Fancast, etc.

The only reason for AT&T (T) to launch its own portal now would be as a placeholder until it launches its own “TV Everywhere” play, where subscribers to its  “U-Verse” TV service would get Web access to cable shows. That’s the same strategy that Comcast (CMCSA), Time Warner Cable (TWC), Verizon (VZ) and everyone else in the pay TV business is trying.

But while AT&T will likely be doing the same, this site isn’t for that. At least, not according to the note AT&T sent to NewTeeVee, which makes it sound like the company is creating…another free Web TV portal:

We have started a soft launch of a new site called AT&T Entertainment. This site will feature free online content available to any consumer. We’re finalizing a few final elements, and we’ll share more details on our official launch soon.

Allrighty, then. As AT&T says, it’s a soft launch, so maybe when it’s ready for primetime, things will make more sense. But for now it’s a head-scratcher.

One thing that distinguishes AT&T’s site from, say, Hulu: Hulu lets you embed clips from the site on your blog, while AT&T’s site, which relies on Hulu for much of its content, doesn’t. So here’s an awesome, upsetting clip you can see on AT&T’s site, but can only embed by heading to Hulu. Makes sense, right?

In the meantime, Hulu wants us to know that:

• It’s now the biggest video site that isn’t Google’s (GOOG) YouTube, at least according to one count. Nielsen’s VideoCensus pegs the site’s February traffic at 309 million video views, which puts it ahead of News Corp.’s MySpace and Yahoo (YHOO). But as AdAge’s Michael Learmonth notes, it’s still not on the same playing field as YouTube, which generated 5.2 billion views during the same period.
• It’s not just a video site, it’s a social network. Or at least, it now has some social-network-like features, like the ability to share favorite clips with your pals. TV.com, Sling.com, Joost, et al, do something similar. The good news is that Hulu lets you import connections from Facebook, MySpace, Google, etc. The bad news is that this won’t appease broadcast and cable TV executives who worry that Hulu takes eyeballs away from their offerings, despite what someone told The Wall Street Journal today.
• Hulu users really, really like their “Saturday Night Live.” The show’s clips accounted for nine of the ten most emailed clips in the last year and eight of the ten most viewed videos that were embedded in other sites. Like this one.

As in the day’s other Hulu news–when the service pulled its video feed from CBS’s TV.com–Hulu is being vague about what happened. But at least the company is being apologetic about it.

Hulu CEO Jason Kilar has an extensive, thoughtful blog post explaining that he’s doing this at the behest of unnamed “content owners”–and acknowledging that the move sucks for Boxee’s small but ardent user base. Boxee CEO Avner Ronen has his own post, in which he explains that he’s been pleading with Hulu for the past two weeks to keep working with his company.

I’m speculating here. But I’ve got a good hunch why the unnamed content owners–recall that Hulu’s JV partners, News Corp.’s (NWS) Fox and GE’s (GE) NBC, are also the site’s two biggest content owners–pushed Hulu to drop Boxee: They did so because the big cable companies want them to. (News Corp. is the owner of Dow Jones, which owns this Web site.)

That’s because, as I noted before, it’s the cable TV providers that have the most to lose from cable bypass plays like Boxee: If you can get all the movies, TV shows and other content you want for free on the Web, why are you paying Comcast (CMCSA) or Time Warner Cable (TWC) for a cable TV subscription?

This isn’t a theoretical problem: Compensation for Web programming weighed heavily in the December dispute between Viacom (VIA) and Time Warner Cable. One of Time Warner Cable’s complaints was that it was paying Viacom for programming Viacom was also running on the Web, without getting a cut of any of the revenue the cable network made.

And last month executives from a major cable network told me they had no intention of putting most of their programming on the Web. That’s because they’d been told by their cable partners, who pay them a hefty fee for each subscriber that gets their shows, that putting that same stuff on the Internet was a lousy idea.

When I talked to Ronen about this impending showdown with the cable guys last month, he essentially shrugged (see video below): The cable guys are going to get passed over whether they like it or not, he said, so if they’re smart they’ll figure out a way to participate. Maybe. But I wondered aloud if they might not try flexing their considerable muscles instead. And perhaps that’s just what happened.

I’ll confess up front that I don’t know, and the two companies themselves aren’t being helpful in explaining the kerfuffle. But here’s the best guess from online video folks who know both companies: Hulu isn’t pumped up about supplying its content to a competitor–especially since CBS isn’t supplying its content to Hulu.

For what it’s worth, Hulu, the joint venture between News Corp.’s (NWS) Fox and GE’s (GE) NBC, offers up this statement: “Hulu has contractual rights with regards to our relationship with TV.com and we are exercising those rights. Out of respect for their confidentiality, we will not disclose our discussions.” CBS offers up a more concise “no comment.” (News Corp. is the owner of Dow Jones, which owns this Web site.)

[UPDATE: CBS weighs in with a saber rattling statement on Thursday afternoon: “CBS Interactive is well within its rights to stream Hulu video content on TV.com under its agreement with Hulu. We are evaluating our next steps at this time.” ]

The background: CNET, which CBS (CBS) purchased last summer, has owned the TV.com domain for several years. This year, CBS relaunched the site as a Hulu-like video portal. Included in the launch was video from Hulu itself, which syndicates its stuff to dozens of sites, including MySpace, Time Warner’s (TWX) AOL, and Sling.com.

The wrinkle: Hulu’s distribution deal was inked with CNET when the company wasn’t owned by CBS. And CBS doesn’t provide its video to Hulu. You can connect the dots here, and that’s what several folks I’ve talked to today are doing. If either one of the companies decides to become more expansive, I’ll update when appropriate.

In the meantime, here’s a clip of “NCIS,” a CBS show you can’t get on Hulu:

And a clip from last weekend’s “Saturday Night Live,” an NBC show you can no longer see on TV.com:

CBS paid $1.8 billion for CNET last summer, and today it is dealing with the consequences: A re-org and layoffs.

CBS execs won’t release specifics on the firings and won’t say how many people were let go altogether. So news will be coming out in piecemeal fashion for some time.

The best that I can tell, though, the cuts came throughout the company’s interactive group, from its London-based last.fm radio service through CBS (CBS) headquarters in New York to CNET’s homebase in San Francisco.

Based on the fact that CBS Interactive boss Quincy Smith flew to the west coast to quarterback the re-org this morning–and the fact that CNET was much, much bigger than the CBS Interactive group–I’m assuming that more CNET employees were let go than anyone else.

Quincy, if I’m wrong, please let me know. And CBS Interactive/CNET employees can reach me directly at peter@allthingsd.com.

In the meantime, here’s the new structure of Smith’s group, via an internal memo that comes from him and Neil Ashe, his CNET counterpart:

Team,

As we come to the end of 2008, we have a lot to be proud of. CBS Interactive is the best online content network for information and entertainment. Our properties are expanding, advertisers are capitalizing on our properties and their scale, and we are positioned well to continue to grow. As we prepare for 2009 and beyond, we’d like to update you on this progress, announce some organizational changes and comment on the broader market environment and how it impacts CBS Interactive.

Progress

CBS Interactive is the 8th largest Internet network in the world. Our combined traffic is up nearly 30% since we closed the merger this summer. CNET, CBSSports.com, BNET, GameSpot, TV.com, CBS.com, last.fm, and CHOW have each had record traffic within the past three months. Our commitment to our users is paying off.

Advertisers have noticed. We have recently signed and announced deals across several of our properties with Microsoft, AT&T, Intel, Bertolli, EA, and GM. In these challenging economic times, marketers are consolidating their efforts with their best partners. Our properties, our audiences, our ideas and our insights will continue to differentiate us in the marketplace.

Finally, we have contributed to and benefited from the TV and Radio divisions of CBS. We’ve done nearly 1,500 purpose-driven promotions to our properties on Broadcast TV, Radio and local TV Stations; CHOW and GameSpot content is running on the CBS Outernet; and CNET ran a major consumer campaign in markets like New York and San Francisco through CBS Outdoor. CBS Interactive is also a key partner to CBS Television Network for major broadcast events. In just the last week, we featured complementary content for events including The Victoria’s Secret Fashion Show, the Grammy Nominations and the SEC Championship.

Moving forward, we have a lot to look forward to. Events like CES, The Grammys, and March Madness on Demand are all just around the corner. Each represent huge cross-platform opportunities where CBS Interactive will again help complete the experience with coverage on air, online, and on mobile for our audiences.

Organizational Promotions and Changes

As we enter 2009, we are making some changes to our organizational structure to capitalize on audience and advertiser overlaps. We are also making some changes to key functions so that we can realize the benefits of our position in the marketplace. These changes mark another significant milestone in our integration, as we fine-tune our organization to best take advantage of the power of our entire network.

Sports, Games and Music

We are combining our Sports, Games and Music properties into a single group led by Steve Snyder. Steve has tremendous product and leadership experience and an enthusiasm for each of these categories. In addition, Tom Jones will be moving over from CNET to head-up the sales efforts for this group. Within the group, our talented senior leaders including Jason Kint, Rich Calacci, Jaci Hays, Kevin Menard, Felix Miller, Doug Schmidt and others will report to Steve and to Tom.

Entertainment & Lifestyle

We are also moving our Lifestyle properties, CHOW and UrbanBaby, to the Entertainment group (TV.com, CBS.com, The CBS Audience Network and TheInsider.com) to capitalize on the similarities in audience and advertisers. This group will continue to be led by Anthony Soohoo with sales led by Ken Lagana. We’re excited to see the innovation that will come from this group in 2009.

Technology & News

Under the continued leadership of Joe Gillespie, our Technology & News division will bring CBSNews.com and CNET News.com into a single CBS Interactive News Group. Each site will maintain its own brand identity, while benefiting from shared resources in design, product and engineering to deliver deeper and more comprehensive coverage of major stories and events. Led by Mark Larkin, with Dan Farber as Editor-in-Chief, CBS News.com and CNET News.com will also have the opportunity to share content and collaborate on stories for the benefit of their unique audiences.

CBS Interactive Marketing

We are bringing together our key marketing functions into a new group called CBS Interactive Marketing led by Mickey Wilson. The group brings together expertise from across the organization so that we can capitalize on our biggest opportunities, and elevate the company to be a strategic marketing partner whose products, consumer insights, and ad innovations are critical to our clients’ long-term success. They will establish the company as the standard for premium content online, and define and evolve brand strategies to capture the biggest opportunities for audience and revenue growth through market planning, insights and execution.

CBS Interactive Business Development

We are also bringing together all of our business development activities. This group will be led by Mike Marquez. Mike and his team will be responsible for the development of all new partnerships, investments, and acquisitions. They will be charged with taking advantage of knowledge sharing across the whole company to ensure that we are the strategic partner of choice for the industry.

Market Conditions

As you know the general economic environment continues to be a challenge. We have always been very aggressive about managing our costs, and that requirement is even more critical now than it has ever been. We believe this new, more efficient organizational structure will produce better results for CBS Interactive, and also result in lower operating costs. It is always very difficult to make these kinds of reductions, but they come after a thorough review of how we are organized and how we operate, and what best serves our many users, advertisers and employees.

CBS Interactive is a special place because of you, and we thank each of you for what you have done, are doing, and will do to exceed the expectations of the tens of millions of people who come to our properties every day.

Today, we sit in a great position. People seek out our brands because we provide them with the information and entertainment they want and need, and marketers seek us out because of the powerful audiences we attract. We are positioned to grow in 2009 and beyond.

Best,
-q, NA