Cable, satellite, and terrestrial send content to the home by transmitting up to 1,000 channels at the same time. This requires a lot of expensive bandwidth and infrastructure; equipment cost also increases the more programs consumers want to watch or record simultaneously. There is also no easy way for consumers to share content between their TVs and mobile devices.

In contrast, IPTV (Internet Protocol TeleVision) uses a fast broadband connection (typically DSL or FTTH) to deliver content to the home, sending only those programs being watched or recorded. This substantially reduces bandwidth and infrastructure costs; equipment costs are also reduced regardless how many programs consumers want to watch or record simultaneously. Sophisticated program guides are now possible, such as the previewing of several other channels while watching the main program. This same broadband connection also provides voice (VoIP) and data (Internet) connections for the home.

IPTV also fits easily into the home entertainment network, enabling the streaming of videos, music, and photos around the home, mobile access to content, PVR and voicemail control via the Internet, home security monitoring, and remote home automation control.

Internet Protocol television (IPTV) is a system through which Internet television services are delivered using the architecture and networking methods of the Internet Protocol Suite over a packet-switched network infrastructure, e.g., the Internet and broadband Internet access networks, instead of being delivered through traditional radio frequency broadcast, satellite signal, and cable television (CATV) formats.

IPTV is distinguished from general Internet-based or web-based multimedia services by its on-going standardization process (e.g., European Telecommunications Standards Institute) and preferential deployment scenarios in subscriber-based telecommunications networks with high-speed access channels into end-user premises via set-top boxes or other customer-premises equipment.

Historically, many different definitions of IPTV have appeared, including elementary streams over IP networks, transport streams over IP networks and a number of proprietary systems. In commercial environments IPTV is widely deployed for distribution of live TV, video play out channels and Video on Demand (VOD) material across LAN or WAN IP network infrastructures, with a controlled QoS.

In the past, this technology has been restricted by low broadband penetration and by the relatively high cost of installing wiring capable of transporting IPTV content reliably in the customer's home. In the coming years, however, residential IPTV is expected to grow at a brisk pace as broadband was available to more than 200 million households worldwide in the year 2005, projected to grow to 400 million by the year 2010. Many of the world's major telecommunications providers are exploring IPTV as a new revenue opportunity from their existing markets and as a defensive measure against encroachment from more conventional Cable Television services.

Also, there are a growing number of IPTV installations within schools, universities, corporations and local institutions.

In December 2009, the FCC began looking into using set-top boxes to make TVs with cable or similar services into broadband video players. FCC Media Bureau Chief Bill Lake had said earlier that TV and the Internet would soon be the same.