Zillion TV offers cable alternative

(image found on dvice.com)
Updated:
Turns out users will need a bit more bandwidth then i previously wrote:
Consumers need at least a 3 megabits per second Internet connection to view standard definition content and at least a 7 megabits per second Internet connection for high-definition programming. Wow that is a big difference from 1.5 Mb, esp. when looking at HD content.
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Zillion TV is currently in beta with the Z-bar service which offers you an alternative to paying cable prices for TV video. By paying an initial $50 installation fee you can cut your ties to the cable company forever. You will then have an option to see great titles and shows for free with advertisements inserted (hmm sounds like cable now) or buy the show and see it without advertisements (also sounds like cable too, without the monthly basic cost).

The set-top box gets the video via your broadband internet connection(1.5 Mb or higher (esp. for HD)). Zillion TV is currently working with broadband providers to provide people with the best service possible. "The company says it won’t be sluggish, either, but instant streaming. Think Amazon’s Video On Demand service in terms of how your purchases and rentals will live, too, as in on the company’s own servers (we’ll soon be accessing all our entertainment in the data cloud, no?) and not taking up space on your hard drives."

Another partner is Visa, which will enhance your commercial-watching experience by giving you instant access to buy stuff right from your TV. There will even be a “loyalty program” that rewards viewers “for simply watching programming they love and interacting with advertising from categories they’ve personally selected.”

There are several big-named companies who have signed up to work with them like: NBC universal, Disney, 20th Century Fox Television, Sony Pictures and Warner Bros. Digital Distribution. With the current host of content providers they have over 15,000 titles to offer with a lot more expected by launch time.

This is not to bad of a cost since especially the base rate is like the regular cable but FREE.
It looks like something definitely looking into when it gets released out of beta. But, until then we still have online options like Hulu to use too without all the costs or legalities of the cable companies.

ZillionTV lets you dump cable for good (dvice.com)
ZillionTV Streams On-Demand Content to Your TV (Electric House)
paidContent.org - ZillionTV Launches; Can It Avoid Boxee's Problems? (Washington Post)
ZillionTV Streams TV Content, Lets Viewers Choose Ads (ecommerce times)