While IP stands for Internet Protocol, this does not actually mean that television content is streaming over the Internet. IP is simply the same method, protocol or technology that enables you to access the Internet. IP-delivered television content is delivered using this technology. IPTV, unlike Internet TV, is primarily a TV experience rather than a PC experience and is meant as an alternative to cable and satellite.

IPTV operates on a premise that's different from traditional satellite or cable television. In IPTV only selected programming and on-demand content are delivered to the consumer, while on satellite and cable, all channels are being pushed all the time to the consumer's home. IPTV's ability to provide two-way communication (you request a programme from the TV guide and the programme is delivered to you) offers interactivity for the customer. Movies, past TV shows and other content can be distributed on demand, and service providers can tailor the requested content and advertising based on the customer's preferences.