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Dan Tynan's picture
Dan Tynan

Culture Crash

ZillionTV: What's wrong with this picture?

Hollywood has finally figured out how to merge the old media of TV and movies with the new media of the Internet. It's called ZillionTV, and if you're anything like me, you may want to run screaming as fast as possible in the other direction.

[UPDATE: I've spoken with the ZillionTV founders, and have some corrections and clarifications to what follows. You can find the new info here.]

Like Netflix Watch Instantly, ZillionTV is a video on demand service that streams content to a box connected to your TV set. Backed by the biggest studios in Tinsel Town, ZillionTV claims it will "deliver on the promise of personalized TV." But from reading the description of the service, what Zillion really seems to be delivering is you, on a platter, to its advertisers.

By year end, Zillion plans to offer some 15,000 free movies and TV shows from Warner Bros., Sony Pictures, NBC Universal, 20th Century Fox Television, Disney and others. Of course, "free" is a relative term. You'll still need to pony up an activation fee of about $100, and some material may only be available for rental or "buy to own." As for the rest, you'll be forced to sit through commercials that can't be skipped or fast forwarded.

When Zillion says "personalized TV," it's really talking about personalized ads. The service is based on the dubious premise that most people won't mind watching commercials, as long as they can pick the types of ads they have to see. Ads may be 30 seconds or as long as three minutes. Yikes.

(Outside of the Super Bowl spots, and any commercials featuring the Swedish Bikini Team, I try to avoid watching ads whenever possible. I know I'm not the only one.)

But wait, there's more. From the press release:

Viewers will have interactive and t-commerce options, including the power to request information and purchase products directly from their television. ZillionTV will offer a distinctive loyalty program, rewarding viewers for simply watching programming they love and interacting with advertising from categories they've personally selected.

See something you like in an ad? You may be able to click a button on the ZillionTV remote and - hey presto - a few days later FedEx shows up on your doorstep with the widget you just bought.

What's most troubling to me about the service is that, while you're watching ZillionTV, it's also watching you. It knows what programs you've watched, what commercials you picked, and what products you've bought, and will use that data to deliver targeted ads. To wit:

The ZillionTV Service also allows advertisers to target audiences by geography, demographics, consumer preferences, and viewing behavior, resulting in guaranteed engagement, better brand alignment and more comprehensive audience response reporting.

Does ZillionTV automatically marry all this data to your name and credit card info, or do you have to actively opt in to the "loyalty program" first? That's the 64 Zillion dollar question. You can't really reward people or deliver goods they purchased without knowing who they are and where they live.

Zillion says it will "give viewers notice, choice and control over the type of personal information that is collected, used and shared." Which is good, but the devil is always in the details. What kind of notice? Used how? Shared with whom? It would be nice to know that my viewing habits and commercial preferences remain anonymous until I say otherwise. The site's Privacy Policy, while not bad, isn't explicit about that.

Of course, it's not sporting to slam ZillionTV without seeing it in action, and it's still in a limited beta. Like any new product the service deserves a fair trial (following by a hanging). But from how ZillionTV Corp describes the service, it seems like something built to serve advertisers, not consumers.

I already have a TiVo that lets me avoid commercials and watch programs when I want to, not when the networks want me to. If I miss a program, I can go to Hulu or Fancast, though I may have to suffer through some ads. Netflix Watch Instantly streams movies and old TV shows to my Roku box, though the selection is still funky and performance has been a bit spotty lately. Then again, it's free with my Netflix DVD subscription (which I also use to watch TV shows sans commercial interruption).

So why do I need ZillionTV? I don't.

In fact, there's only one reason I can think of for using the service, and that would be if Hollywood pulls its content from other online providers and makes it available only via ZillionTV and its cable/satellite partners.

In other words, in a few years the studios that own ZillionTV might try to force consumers to use it to the exclusion of other online video sources - essentially doing what Hollywood always does, trying to control the entire process from content creation to distribution.

I'm not saying this will definitely happen, or that such a scheme would even succeed, but I wouldn't be surprised if they tried it.

You might even call it a classic Hollywood ending. But not a happy one.

When not playing couch potato, Dan Tynan tends his blogs, Culture Crash and Tynan on Tech.

What People Are Saying

Right Idea: Question is: Right time?

I feel as the cost of technology (i.e. internet, hardware, software, etc) continues to drop and it's productivity continues to rapidly increase, it is clear that traditional cable/dish services will become obsolete, much like the tape cassette did and now the CD (as digital music is taking over). Clearly TV's will eventually become CPU monitors. Think about it, it's all about integration, ease of innovation, and customizability. Internet TV does all of these. Traditional cable is already starting this trend, companies like ZillionTV simply are in the category of those that jump ahead of the norm, take advantage of their insight, and make some serious dollars. One poster on here mentioned that Comcast has the infrastructure...I agree...however, they do NOT have the desire to take on the risk of straying too far from their core competencies and possibly alienating customers. Kodak refrained from going digital with photography for a while, and they lost their dominancy because of it.

This general idea is clearly the future. I see slingboxes, appletv, tivo, dvr, etc. all taking small (less risky) steps in the transition is all. In my opinion, ZillionTV just has some balls, now we will see if they have the brains to gain the momentum.

...of the subject, but why do the service providers keep pushing land line phones so hard...just let it go already okay.

Pure Braindead Business Model

Think about it for a minute.

ZillionTV will spend enormous amounts for servers to serve the content. It will also spend enormous amounts licensing the content from Hollywood. They will serve the content on Broadband connections they don't have to pay for (although they still have to spend a lot on bandwidth at the data centers).

And they will generate revenues selling ads.

Wow!

First of all, if it were that simple, Comcast has all the infrastructure in place (including the fat thick cables to offer large bandwidth), RIGHT NOW! Why aren't they giving me unlimited on-demand viewing experience by throwing in some ads in the middle? I even pay money to Comcast on a monthly basis and I still can't get infinite free shows and the choice.

Secondly, the moment services like this become common, Internet service providers will have to raise their prices for their broadband access. There is no way in hell they can support $30 a month unlimited bandwidth use. I hear some of them are already experimenting with these ideas with unlimited offerings at $100+ a month. How many consumers will want that?

A pure, braindead idea to start with. This isn't going anywhere. I hope no stupid company buys this junk off before they prove their business model, which they can't.

So let's get this

So let's get this straight...

You did an article on a product without actually testing the product?

Get back to me when you actually REVIEW it.

I found this article a bit

I found this article a bit disturbing. The whole thing is written from, and based on a news release. It's an interpretation of news, not information with value. It echoed the reality that DemocracyNow warned about in it's Rocky Mountain Newspaper piece... where will we get real, comprehensive news when the reporters (like Dan here) don't have time or resources to actually investigate the news. There's actually a pretty good story behind ZillionTV if you take time to find it.

see my update

posted here:

http://blogs.computerworld.com/zilliontv_part_deux

unfortunately, zilliontv isn't readily available for testing at the moment. when it is, I will be sure to give it a spin.

dt

Dan Tynan
Tynan on Tech
dantynan.com

Here. Have all my information.

Dan,

So you think people would have a problem with someone else in control of all their information?

Your probably right. Google hasn't done very well selling targeted ads based on searches. Facebook almost certainly won't be around much longer either with people having to upload their interests, location, tastes in music movies books, etc. People just won't trust them.

Fact of the matter is people don't care anymore hence the success of those two companies. Zillion sounds like they're closer than anyone else has ever been to marrying the two mediums.

if you've been following the news

you'd see that people do care very much about privacy on facebook -- hence the debacle about changes to the fb terms, and fb's subsequent retraction of those changes.

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9128159

same with google. people watch google very closely for privacy violations. it's always news when they do something that seems fishy.

the question is, do they care enough to stop using them? so far, no. but it could happen, if the privacy breaches are egregious enough.

peace,

dt

I don't normally agree with Mr. Tynan...

but this time I have to side with him. Don't anyone mess with my right to fast-forward through commercials. That's a (as they say in DOD parlance) "non-starter." I don't care where you put them, even good commercials after the tenth time become offensive, and after the fiftieth time, well, just shoot me and put me out of my misery.

Even a $50.00 startup fee is a big gulp for an organization that is likely to make great big mountains of money from running this service. The collection of marketing information, personal though it may be, normally doesn't excite me all that much, but I would have to say that after everything else that Mr. Tynan has shared with us about this service, well that's just the (offensive statement withdrawn voluntarily--use your imagination to think of something that metaphorizes cherry and ice cream).

I agree...he's just a hater

I agree...he's just a hater looking for the bad in everything and not seeing the poitives in this. And also not telling you all the positive details and exagerating the negatives. The intall fee is going to be in the $50 range not $100. Also the free content will have LIMITED commercial content. In a movie the adds will be before and after not during and not in a letter box at the bottom. As for regualar tv shows the commercials will be in the normal spots but there will be on average about 30 to 40% LESS of them. So YES there will be commercials on the free content but NO they will not be anything like we have seen prior. So in my opinion(an you know what they say about opinions) he is just up on his soap box ranting about piddly stuff just because he can.

On Target

Mr. Tynan is right on target in my eyes. Advertisers have access to too much information already: credit card purchases, tax records, incomes, home values, vehicle information including recreational vehicles, marital and parental status, grocery store loyalty cards, credit history, and more. With technology, all this data can be aggregated to identify behavioral buying patterns I don't even know about myself. When marketers know my spending habits better than I do, I'm at a disadvantage. Capitalism requires an equal playing field to have a truly free market. This info tips the scales!