Hulu and Skyfire still aren't playing together, but at least the video streaming site and the Windows Mobile browser are now explaining why.

Says Skyfire:

Skyfire users have been wondering why Hulu videos are currently not playing in Skyfire. The answer is simple: Hulu has decided to block you from watching Hulu videos in the Skyfire browser, as part of blocking all mobile access to Hulu, as well as TV access such as with Boxee and PlayStation.

There is nothing wrong with your Skyfire browser, and you can watch other videos on the web.

As for Hulu? Well, Skyfire, that helpful bunch, points us to Hulu's reasoning.

For decades, the TV/movie industry has built its business model on a windowing strategy. Content rights are granted for limited time periods across specific distribution channels. For example, a movie starts in theaters, then moves to pay-per-view and DVD, then to pay-cable channels, later to broadcast, and so on down the line. Similarly, TV shows are available on TV first, then in repeats, then to DVD and possibly syndication, etc.

Distribution availability across platforms — theaters vs. TV vs. recorded media like DVDs vs. online streaming vs. mobile phones — was always implicitly or explicitly controlled in that world. But a few factors have made the barriers between those platforms more permeable: the rise of the web, increased broadband
availability, the ease of digitizing video, and the increase in the computing power of devices like gaming consoles, set-top boxes, and mobile phones.

However, in the near-term, the windowing strategy is still dominant in the business. Billions of dollars flow in across these different windows, and entire companies are organized around them. Nothing productive comes from flouting that reality (except to law firms who work on the occasional lawsuit).

Hulu did say "We do, however, expect these windows to converge over time. There's no way around that." Translation: It'll happen; we just have to figure out a way to make more money off of it. (OK, there may well be other licensing issues, too, but that's hardly sexy, now is it?)