ZillionTV: Web TV That Doesn't Make Sense

Wed, Mar 4th, 2009

Today's buzzy Internet TV story: ZillionTV, which plans to offer a $50 set-top box that can access 15,000 Web TV shows and movies later this year. You can read more about it at many pre-briefed publications; we've chowed down on this thousand-word profile from Wired.

The key to ZillionTV's business: Unlike other Web video on demand services like Netflix (NFLX) and Apple's (AAPL) iTunes, it'll only be available to people whose Internet service providers have made a deal with ZillionTV. That is, they want your cable or phone company to buy into the service and offer ZillionTV's video an express lane to your house.

But we're curious why any major Internet provider would do this. In the U.S., most people get their Internet service from a cable or phone company... most of which already sell lucrative digital cable/on-demand services.

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