A dedicated Hulu app is coming to the iPhone, according to the folks at Silicon Ally Insider. The report sites a “plugged-in industry executive,” claiming the Web video app would be available within months and will work over both Wi-Fi and the 3G network.

There are a few potential problems with any possible iPhone Hulu app. First, AT&T may be concerned with the streaming video straining their data network. Rumors swirled earlier that AT&T was pressuring Apple to deny approval for SlingPlayer, a television streaming application, citing network concerns as the reason. Also, Hulu currently competes with iTunes, offering ad supported television shows and movies similar to iTunes’ pay-per-download model.

Working in Hulu’s favor is the fact that it is extremely popular, praised for its extensive library, simple interface, and slick design. Also, there are other similar applications already available, including Joost and YouTube, which has recently expanded its offerings through an agreement with Sony Pictures, CBS, and Lions Gate.