IPTV Explained

IPTV, essentially, has two components:

Part 1:
Internet Protocol (IP): specifies the format of packets and the addressing scheme for a network. Most networks combine IP with a higher-level protocol.

Depending on the vendor solution, user datagram protocol (UDP) is the most typical higher-level protocol. The protocol establishes a virtual connection between a destination and a source. IP allows you to address a package of information and drop it in the system, but there's no direct link between you and the recipient.

Part 2:
Television (TV): specifies the medium of communication that operates through the transmission of pictures and sounds. We all know TV, but here we are referring to the services that are offered for the TV, like linear and on-demand programming.

(via IPTV Explained)