From a TV viewer’s perspective, IPTV is very simple: Instead of receiving TV programs as broadcast signals entering your home via a rooftop antenna, satellite dish or fiber optic cable, you receive them as streams (downloaded and played almost simultaneously) via your Internet connection. Although IPTV can probably only work on relatively slow ADSL broadband connections, which can only handle 1-10 Mbps (million bits per second – roughly the amount of information that enters your computer every second in an average novel), it is much better on fiber broadband lines, which have about 10 times higher bandwidth (information carrying capacity), perhaps 10-100 Mbps. You watch the program on your computer, on a mobile device (such as a smartphone) or on a set-top box (a kind of adapter placed between your Internet connection and your existing television receiver, which decodes the incoming signals and allows your TV to display Internet programs).
From a broadcaster or phone company’s perspective, IPTV is a bit more complicated. For all the video you want to make available, you need a sophisticated storage system and a web-style interface that allows people to select the programs they want.
The first type – and the one you’re probably already using – is called video on demand (VOD). With a service like Netflix (an online movie site), you pick a TV program or movie you want to watch from a wide selection, pay your money, and watch it right then and there.
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