Freedom
A switched IP network also allows for the delivery of significantly more content and functionality. In a typical TV or satellite network, using broadcast video technology, all the content constantly flows downstream to each customer, and the customer switches the content at the set-top box. The customer can select from as many choices as the cable or satellite company can stuff into the “pipe” flowing into the building. A switched IP network works differently. Content remains in the network, and only the content the customer selects is sent into the customer’s building. That frees up bandwidth, and the customer’s choice is less restricted by the size of the “pipe” into the building.

Interactivity
An IP-based platform also allows significant opportunities to make the TV viewing experience more interactive and personalized. The supplier may, for example, include an interactive program guide that allows viewers to search for content by title or actor’s name, or a picture-in-picture functionality that allows them to “channel surf” without leaving the program they’re watching. Viewers may be able to look up a player’s stats while watching a sports game, or control the camera angle. They also may be able to access photos or music from their PC on their television, use a wireless phone to schedule a recording of their favorite show, or even adjust parental controls so their child can watch a documentary for a school report.

Note that this is all possible, to some degree, with existing digital terrestrial, satellite and cable networks in tandem with modern set top boxes. In order for this to take place, an interaction between the receiver, the transmitter, and a feedback channel is needed. Due to this terrestrial, satellite and cable networks for current television does not allow interactivity. However, interactivity with those networks can be possible in the combination with different networks like internet or a mobile communication network.

VoD
VoD stands for Video on Demand. VoD permits a customer to browse an online programme or film catalogue, to watch trailers and to then select a selected recording for playback. The playout of the selected movie starts nearly instantaneously on the customer's TV or PC.

Technically, when the customer selects the movie, a point-to-point connection is set up between the customer's decoder and the delivering streaming server that allows playback functionality (pause, slow-motion, wind/rewind etc).

In an attempt to avoid content piracy, the VoD content is usually encrypted. Whilst encryption of satellite and cable TV broadcasts is an old practice, with IPTV technology it can effectively be thought of as a form of Digital Rights Management. A film that is chosen, for example, may be playable for 24 hours following payment, after which time it becomes unavailable.

IPTV based Converged Services
Another advantage of an IP-based network is the opportunity for integration and convergence. This opportunity is amplified when using IMS-based solutions. Converged services implies interaction of existing services in a seamless manner to create new value added services. One good example is On-Screen Caller ID, getting Caller ID on your TV and the ability to handle it (send it to voice mail, etc). IP-based services will help to enable efforts to provide consumers anytime-anywhere access to content over their televisions, PCs and cell phones, and to integrate services and content to tie them together. Within businesses and institutions, IPTV eliminates the need to run a parallel infrastructure to deliver live and stored video services.