ZillionTV to offer free content directly to TVs
Broadband video-on-demand service will offer films in pay per view window
By Susanne Ault -- Video Business, 3/4/2009
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The programming, spanning 15,000 new and catalog TV episodes and films, is viewed by way of a wireless ‘Z Bar’ that is thin enough to sit on top of many flat-panel sets. The bar is designed to act like a set-top, in bringing high-quality Web VOD content to TV sets, but look as unobtrusive as possible.
Warner Bros., Sony Pictures Entertainment, 20th Century Fox, NBC Universal and Walt Disney Studios—all Zillion equity partners—are committing a variety of TV shows and films in the traditional pay-per-view window, generally 30 to 45 days after DVD. The Dark Knight will be among the available VOD movies at launch. Also available will be episodes of 30 Rock, Smallville and Gossip Girl.
Zillion said it also has more than 40 content agreements with other providers.
To navigate the Z Bar, people use a motion sensor remote, which is being touted as the first such control for a TV product. The remote beams a cursor onto the screen, in the style of Nintendo Wii controllers, and works to simplify the point and select process.
Zillion has already rolled out its Z Bar system for beta testing, with the goal for it to launch nationally at the end of the year.
The company plans to bypass retail in offering the product. Instead, Zillion has linked up with an unspecified Internet service provider(s) to pitch the product to their consumer base.
Although the service will likely charge a start-up fee of less than $100, consumers will not have to pay any subscription expenses to watch the content. Most content will come tagged with three access options: watch for free after first viewing a commercial; rent for a 24- to 48-hour period for 99¢ to $3.99; or buy the content, which will reside within Zillion’s server universe, for $9.95 to $14.95. Zillion hosts data centers in Los Angeles, Washington D.C., Chicago and Palo Alto, Calif.
Regardless of method, the content should start playing almost immediately upon selection.
Generally, new release films will bow for the Zillion service in the traditional PPV/VOD window 30 to 45 days after DVD. TV episodes might bow as soon as the day after they are broadcast.
Zillion believes its a la carte system will trump other broadband-to-TV offerings that come with subscription requirements, including Netflix and satellite/cable VOD content. Additionally, the available free content should prove a competitive distinction.
“This is the first A-VOD system,” said Mitch Berman, Zillion co-founder/CEO. “In today’s world, people want value for their dollar. [People] don’t want to be forced to pay over $70 a month and maybe watch just four of the channels.”
Beyond seeing upside for consumers, Berman insists ZillionTV will boost studio and advertiser revenues. Participating studios will share in the rental/purchase fees. Also, advertisers will be able to access key viewing information in order to maximize the reach of their commercials. For example, heavy Oprah viewers could be sent female-friendly spots. Many commercials should also include e-commerce links that consumers can click to buy the featured products.
Berman recognizes that traditional media companies might feel threatened that advertiser-supported VOD could cannibalize broadcast and/or DVD revenue. But he believes Zillion acts as a bridge between old and new media, where many can benefit.
“The old models need to change, and those who don’t will be swept away,” said Berman. “This will augment their revenues.”
