Maybe it was too good to be true. A world where content providers, a VOD internet site, and a small group of rag-tag developers came together to deliver quality content legally and easily.

Hulu on Boxee meant watching our favorite shows, legally, from the comfort of our TV via Apple TV, or on our intel Macs within a slick interface. It was nirvana for TV junkies. Well kids, the parties over. At least for now it is.

Jason Kilar, CEO of Hulu, posted a open letter to the Hulu community explaining that content providers had asked them to turn off access to the sites content via Boxee. Jason understands that if he doesn't keep the content providers happy there will be no Hulu. From the letter, it seems that Jason is genuinely bummed about the situation.

Avner Ronen over at Boxee posted basically the same information explaning that the Boxee group tried in vain to keep Hulu available for Boxee users. Unfortunately, Hulu couldn't get their content providers on board. Boxee plans on removing Hulu access from Boxee on Friday.

Avner shared a great statistic in his post. Boxee users generated over 100,000 streams from Hulu last week. Those streams equal revenue dollars. Every time someone watches a Hulu video they have to sit through ads that can't be skipped. It's the price you pay for free video on demand. It's sad that the content providers couldn't see that Boxee users we're putting money in their pockets.

Until we are able to speak with one of the content providers, we can only speculate on their reasoning behind the decision. We're hoping, and trying, to contact one of the content providers to get their side of the story.