Free Internet provider NetZero Tuesday made a move to shake up the Internet advertising industry with the acquisition of AimTV.
AimTV has developed technology that will allow NetZero (NZRO) to deliver advertisers full-motion broadcast quality Internet commercials to its subscriber base of more than 2 million.
NetZero will acquire AimTV for approximately
1 million shares of NetZero stock. The
acquisition is scheduled to close by the end of the year.
AimTV developed a technology designed to let advertisers run
broadcast-quality television commercials over narrowband Internet connections.
Mark R. Goldston, NetZero chairman and chief executive officer, said many
major advertisers have been eagerly waiting for technology to broadcast 30
and 60-second television commercials over narrowband Internet connections.
“The unique capabilities of AimTV technology will give NetZero the
opportunity to combine the powerful one-to-one marketing capability
provided by our zCast targeting technology with the visual impact of
television-quality commercials.” Goldston said. “NetZero will take what
essentially has been dead space on the user’s screen during a typical
Internet dial-up process and will turn it into a dynamic environment.”
Brian Woods, AimTV chief executive officer, said the Internet broadcasting
company fulfilled their goal to deliver enrich broadcast quality ads over
traditional Internet connections and that executives are extremely excited
about working with NetZero.
“AimTV was formed with the goal of providing advertisers with the benefits
of delivering broadcast quality television commercials over the Internet,”
Woods said. “NetZero has the infrastructure and user base to leverage our
technology and help us to achieve that goal.”
Goldston said the free ISP was anxious to put the broadcast quality video
streaming to work at Net Zero.
“We anticipate that the first application of the AimTV technology will be
television-quality commercials displayed during the log-on process,”
Goldston said. “NetZero will be offering this exciting new technology to
advertisers under the name, GroundZero.”
Goldston added NetZero’s GroundZero programming delivers ads to
subscribers during the idle time it takes for modems to dial in and
establish an Internet connection. NetZero plans to provide advertisers with
the service in the first half of next year.
AimTV is a privately-held company that has been funded to date by prominent
investors from the entertainment, advertising and consumer products
industries. AimTV’s chairman and chief executive officer Brian Woods is the
former executive vice president and chief marketing officer of Blockbuster Entertainment Worldwide
(BBI).
NetZero is an advertising revenue-based Internet access providers that
offers free dial-up service nationwide. Since the ISP’s debut in October
1998, the ISP currently serves more than 2 million subscribers its free
Internet access service in 1,600 U.S. cities.
