What Is IPTV?
IPTV is not TV that is broadcast over the Internet.
"IPTV is generally funded and supported by large telecom providers who have undertaken the mission of creating a competitive replacement product for digital cable and satellite services." (Jeremy Allaire)
"While the "IP" in its name stands for Internet Protocol, that doesn't mean people will log onto their favorite Web page to access television programming. The IP refers to a method of sending information over a secure, tightly managed network that results in a superior entertainment experience." (Source: Businessweeek - "The real meaning of IPTV")
IPTV is particularly good for the established media content production business, including Hollywood and all of the major television distribution networks on satellite and cable. IPTV allows these organizations to have total control of the content distributed and to greatly reduce opportunities for theft and piracy, which last year cost the cable industry $4.76 billion in unrealized revenue. (Source: Businessweeek - "The real meaning of IPTV").
The way IPTV television is being conceived integrates multiple ways to monitor and record user choices, preferences and selections over time therefore appearing as an ideal platform on which to add personalized e-commerce options and more targeted advertising.
IP-TV is a carrier-led and controlled platform. There is a physical carrier that has physical pipes and infrastructure that it operates and controls. The consumer interacts directly with that operator/carrier.
As such this is an end-to-end system or semi-closed network (infrastructure is all within the carrier environment, and cannot be normally accessed to the Internet as a whole. Further to this, the deployment infrastructure and devices to access it are all managed and operated by the IP-TV carrier).
IPTV is definitely a massive connectivity infrastructure upgrade to be deployed over a number of years, and which underlines major changes and upgrades to connectivity, transport and delivery devices both on the operator environment as well as on the consumer side.
IPTV approach is a fundamentally geographically-bound approach. This is mainly due to the fact that the deployment infrastructure is based in regions and in neighborhoods connected to consumer premises (users’ homes). User experience is also bound to their living rooms and set-top boxes. Local regulations and policies further influence and limit IP-TV to be a strongly geographically-bound model.
IPTV will offer essentially the same product and programming offered by digital cable and satellite providers. Similar on-demand and pay per view products probably with some extra integration with voice, and different pricing.

Read more