• by Wayne Friedman , March 5, 2009

Zillion TV, a new Internet-based TV service, has announced deals with major movie studios and TV networks, adding to entertainment content providers' array of new digital content distribution agreements.

The new service uses an existing broadband Internet connection, a set-top box and a motion-sensing remote control. For the most part, Zillion TV is free and ad-supported. There are no monthly subscriptions, only a one-time, initial service activation fee. The service expects to fully launch by the end of 2009.

Zillion is in beta test right now, but it has already secured agreements from all the major Hollywood studios: Walt Disney, 20th Century Fox Television, NBC Universal, Sony Pictures and Warner Bros. Digital Distribution.

Currently, Zillion is testing its service in a number of markets. It is looking for deals with major Internet Service Providers (ISPs). Zillion also has agreements with some major advertisers, including Visa. Zillion says its service allows traditional TV advertisers to get addressable and interactive TV advertising benefits and access to more targeted consumers.

Viewers receive programming through on-demand streaming to the television set. They will not be able to download programs. Viewers can also choose the type of programming they want from ad-supported content for free or pay-per-program with no advertising. If ad-supported programming is chosen, a viewer will be able to interact with the advertising.