Zillion TV continues to sputter along… Originally backed by a few studios, amongst others, in what sounded like a “Hulu box”, the startup has seen all manner of turmoil. Including blown 2009 launch plans, a restructured sales model, a CEO replacement, and unflattering commentary by pilot testers. However, buried within a lawsuit (more turmoil!), we’ve learned Qwest Communications has thrown Zillion a $10 million lifeline “in return for exclusive rights to offer the IP-delivered video-on-demand service in the telco’s footprint.” Yet, it remains to be seen if ZillionTV will actually launch with any telcos in the second half of 2010 as intended. They could always pull a Vudu and figure out how turn it around. But I wouldn’t bank on it. Qwest didn’t… “[We] made a very small, or immaterial, investment in Zillion.”