Zillion TV plays with net neutrality fire

I want to point your attention to an intriguing start-up beginning to make waves for a Q4 product release. It's an interactive over-the-top video play called Zillion TV, but its delivery method is hardly the reason I think it warrants discussion.

Zillion TV's founder and CEO Mitch Berman is a seasoned old TV guy who wants to bring his 27 years of experience growing networks like HBO, E! Entertainment and Sky Network to the nascent interactive TV market. Berman thinks he can leverage his experience working with consumers, content owners, ISPs and technology firms to deliver a solution that delivers value for all involved.

Here's the catch: Zillion TV plans to assure QoS for its customers through deals with ISPs to get its traffic prioritized on their networks. Cue the net neutrality wonks head explosions.

Zillion TV didn't say which ISPs it has deals with, but customers won't be able to access the service unless their ISP partners with ZillionTV, ala ESPN 360. The service reportedly will offer about 15,000 streaming television shows and movies, which can be rented for a few dollars, purchased and stored in the cloud for a few more dollars, or streamed for free with advertising. Another interesting part of the Zillion TV model is that customers of the ad-supported service will be able to choose the genre of ads they want to watch, which would likely be helpful to targeted advertisers and less annoying to consumers.

Zillion TV will be available initially through a set-top box that customers will purchase through participating ISPs (Oh, the collusion of it!) for a one-time $50 fee, though Berman said the company eventually wants to offer the service directly to broadband enabled TVs. Berman thinks Zillion can beat out the numerous other video-on-demand boxes and over-the-top offerings because of the exclusive content it will have due to deals with Hollywood studios, the ISP peering agreements to allow seamless high-quality video delivery, and the range of subscription options available to the consumer.

Currently, Zillion TV has partnership deals with dozens of studios like Disney, NBC, Sony and Warner Bros., but so do Hulu and TV.com. But neither of those companies -- and none others I'm aware of -- have the ISP peering arrangements in place to prioritize their traffic, which could prove to be a huge differentiator as IP traffic jams become more common place with surging video consumption.

We'll see if Zillion TV's range of options appeals to consumers wading through the sea of video-on-demand devices and services, such as Netflix, that already have traction in the market. Also, we'll see if its unique ISP relationships get it in hot water with network neutrality mavens, many of which will hold regulatory roles under the Obama administration. 

- Pete 

For more:
- see the wired.com blog post about Zillion TV here