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It is a subsidiary of United Onlinewhich in turn is a subsidiary of investment bank B. Netzero bought FreeInet around FreeInet was the first free national internet service provider.

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NetZero was launched in Octoberfounded by Ronald T. NetZero grew to 1, users in six months.

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NetZero's model was free Internet access to attract an audience for highly targeted advertising. The ad serving technology has over nine patents and NetZero was the first company to invent real-time URL targeted advertising based on surfing patterns under US patent 6, [2] Monitoring of Individual Internet Usage.

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In late several other companies began to copy the NetZero free access model including Juno Online Serviceswhich since August had offered E-mail but not World Wide Web access for Netzero com mailSpinway launched with Yahoo!

Netzero com mail claimed to offer free Internet service forever, in exchange for displaying ads, either on a permanent toolbar or on a "banner" that was shown when online. NetZero sued them for infringing on a banner ad patent. Starting in JanuaryNetZero began charging for access time over 40 hours per month.

Riley Financial in July NetZero later lowered the threshold for their free service to 10 hours per month. In Junethe company released a new client that replaced the advertising bar with an Internet Explorer Browser Helper Object.