Block Communications acquires streaming tech outfit Zone·tv

Ohio-based US media and broadband holding company Block Communications Inc. (BCI) has acquired the intellectual property and assets of Canada and US-based video streaming technology and aggregator Zone·tv from its current owner, ES3.

The company said the deal would help drive Zone·tv’s growth strategy while securing a foothold in the video streaming industry for BCI.

The assets of Zone·tv include its zone·ify free streaming television service available via app stores, connected TV devices and US and Canadian telecom and cable operators.

BCI owns a number of cable, publishing, Internet and telephone service providers. The company has acquired Zone·tv from ES3, a specialist in interactive applications for the connected TV and traditional TV markets, in which BCI remains a minority owner.

Zone·tv CEO Jeff Weber, a 30-year television industry veteran who was a leader on the team that launched AT&T’s U-verse service, will continue to run the company under the new ownership. BCI said it would  retain all Zone·tv employees and further invest in product, content and marketing. Other terms of the deal were not disclosed.

Zone·tv has been something of a pioneer in delivering FAST-like services, and claims to be the only ad-supported streaming service that does not interrupt movies during their showing.

The company says its approach addresses consumer concerns about untimely ad splicing while catering to rights owners need for monetization through greater ad fill and higher CPMs.

Zone·tv has distribution agreements in place with players including Comcast, Xfinity, Xumo, Cox, Rogers, TiVo, Roku, iOS and Android, as well as relationships with content producers such as Magnolia Pictures.

“BCI’s investment is a strong endorsement of the innovative, independent service we’re building. This investment will allow Zone·tv to aggressively pursue opportunities to attract more customers, studios and compelling new content. With BCI’s support, we will attract more active users, cultivate new partnerships and expand our offerings,” said Weber.

“We believe in the model Zone·tv has created. Streaming’s place in the TV business is only going to become more powerful, and Zone·tv will ensure that BCI is on the leading edge of this exciting phase nationally,” said Jodi Miehls president of Block Communications, Inc.

“With this acquisition, BCI demonstrates our commitment to a new era of video via streaming television technology,” said Allan Block, chairman and CEO of BCI.