ZillionTV, an over-the-top broadcaster with a twist, is embarking on a consumer trial after previously working only with communications services providers (CSPs).

ZillionTV delivers video-on-demand via any Internet connection of sufficient speed (a minimum of about 3 Mbps). The company is backed by several major Hollywood studios, so it has access to a library of new and classic TV shows, movies, sports, music and other content. Access is subscription-free, the company says, but there will be an activation fee.

The twist is that consumers choose their advertising preferences. The company plans to reward subscribers for watching ads.

ZillionTV, founded only in April, is still looking for a business model that will allow it to succeed where others (e.g., Boxee) have so far failed.

To that end, it is also trying to integrate its technology directly into Internet-enabled consumer electronics.

ZillionTV CEO Mitchell Berman said, “We’re also rapidly moving forward with efforts to embed the ZillionTV service in an assortment of consumer electronics devices as industry statistics point to embedded services as the future of video-on-demand.”

Berman also said: “We’ve been watching the industry carefully and closely monitoring trends to evaluate our distribution strategy. We wholeheartedly believe that partnering with ISPs is the best strategy and remains our primary distribution path.

“However, our goal is to offer access to the ZillionTV service to all consumers. As household penetration of stronger broadband Internet connections climbs and ISP infrastructures are increasingly better equipped to handle new services over their pipes, we are now considering offering the ZillionTV service directly to interested viewers in areas not reached by our CSP partners.”

Potential viewers can now go to the company’s Web site to sign up for a beta test. This test is scheduled to commence in Q4 in select markets, the company said. ZillionTV expects to become available to consumers nationwide in the second half of 2010.

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