NetZero
| Company type | Subsidiary |
|---|---|
| Industry | Internet service provider |
| Founded | October 1998 |
| Founder | Ronald T. Burr, Stacy Haitsuka, Marwan Zebian, Harold MacKenzie |
| Fate | Merged with Juno Online Services to form United Online |
| Successor | United Online |
| Headquarters | Woodland Hills , United States |
Area served | United States |
Key people | Ronald T. Burr (founder and initial CEO), Mark Goldston (CEO during IPO), Charles Hilliard (CFO during IPO) |
| Products | Dial-up Internet, DSL, mobile broadband, VPN (NetZero DataShield), wireless broadband, NetZero Hotspot |
| Owner | B. Riley Financial (via United Online) |
| Parent | United Online |
| Website | netzero |
NetZero is an Internet service provider based in Woodland Hills, California, within the Los Angeles area. It functions as a subsidiary of United Online, which is itself under the ownership of investment firm B. Riley Financial. United Online's portfolio also includes Juno Online Services and BlueLight Internet Services.
History
NetZero was established in October 1998 by entrepreneurs Ronald T. Burr (who served as the initial CEO), Stacy Haitsuka, Marwan Zebian, and Harold MacKenzie. The company rapidly expanded, reaching one million users within just six months. Its innovative business approach provided free Internet access funded by targeted advertising and introduced real-time URL-targeted ads protected under US patent 6,366,298. The founders raised $60 million in venture capital from backers such as idealab, Draper Fisher Jurvetson, and Compaq. A strategic partnership with Compaq integrated NetZero into the out-of-box experience (OOBE) on newly purchased computers.
In September 1999, NetZero launched its initial public offering on NASDAQ under the ticker NZRO. During this period, Mark Goldston assumed the role of CEO and Charles Hilliard became CFO, while Burr transitioned to President and CTO. The company increased its brand recognition through sponsorships including NetZero @ the Half featured during the NBA on NBC halftime broadcast.
By late 1999, competitors like Juno Online Services, Spinway (partnered with Yahoo! and AltaVista), Freei, and BlueLight Internet adopted similar advertising-supported free access models. To protect its market position, NetZero filed a patent infringement lawsuit against Juno regarding banner ad technology. After the dot-com crash in early 2000, NetZero acquired multiple defunct competitors such as AimTV, Simpli, and RocketCash to strengthen its market presence.
In January 2001, NetZero introduced premium plans that charged users exceeding 40 hours of monthly usage while promoting a "Platinum" unlimited plan priced at $9.95 per month. This transition enhanced the company's financial results and culminated in a merger with Juno Online Services to create United Online (NASDAQ: UNTD). Subsequently, the free usage cap was lowered to 10 hours per month.
Technological advancements included a 2005 update that replaced the advertising bar with an Internet Explorer Browser Helper Object and unveiled the "3G" dial-up service featuring link prefetching and data compression to boost browsing speeds without broadband connectivity. Shortly thereafter, "NetZero DSL" was introduced to broaden broadband offerings. By 2012, NetZero retained roughly 750,000 dial-up customers.
NetZero also developed proprietary dial-up software compatible with Mac OS 9 and Mac OS X platforms. Although a Linux version was available initially, it ceased functioning correctly after 2009 due to technical constraints.
Wireless service
In March 2012, NetZero expanded its services beyond dial-up and DSL by launching mobile broadband utilizing the Clearwire network. This offering was later extended nationwide through Sprint’s 3G network along with a home wireless broadband solution tailored for residential and business environments. In 2013, NetZero introduced NetZero DataShield, a personal virtual private network (VPN) designed to secure user data across all WiFi connections including public hotspots. Additionally, the company provides NetZero Hotspot as part of its wireless service lineup.
See also
External links
- Articles with short description
- American firms founded in 1998
- Telecommunications firms founded in 1998
- Internet entities launched in 1998
- Internet service providers in the United States
- Companies headquartered in Los Angeles
- Technology firms located in Greater Los Angeles
- 5
- Companies of the United States by year of establishment
- American companies established in 1998