I recently tired out a set-top box from Interactive Television Networks that lets the company deliver TV content over the Internet instead of cable. Unlike systems from companies like Akimbo, which download content onto a box with a hard drive, ITVN streams the content to the TV (stored content remains on the ITVN servers, not a local drive).

ITVN says delivering broadcast-quality television over a broadband connection (it calls the technology Internet Protocol Television, or IPTV) has advantages over satellite or cable delivery, but with the same quality. For example, the operator (in this case, ITVN) only has to deliver content chosen and paid for by the consumer, not a range of 500+ channels that the consumer may never watch. In addition, the IPTV system is more interactive than regular TV, as two-way communication with services occurs more like a Web environment.

At the moment we are in the very early days of IPTV. The ITVN system currently has only two channels of content, with more expected to be added later this month and in coming months.

The two channels currently available on ITVN are the Silver Screen channel, which shows old movies and television shows, and XTV, which shows adult content. Planned channels include a Fitness Life channel that lets users watch and download fitness videos live or on-demand; a Worldwide News channel (local news from around the world, aimed at foreigners who live here and want to watch their local country's news), and Music Vault, an on-demand music video channel.

One would presume the XTV channel will drive ITVN's revenue for the foreseeable future: XTV subscriptions cost $29.95 per month (not including any on-demand pay-per-view programs), while the Silver Screen costs $4.95 per month.  It isn’t the first time adult entertainment drove the adoption of new technology - we've seen it before with VCR sales, DVDs and even the Internet to some extent.

But I think IPTV will blossom into more than just adult entertainment. Content creators will be able to use this delivery method to reach audiences they might not have been able to reach with cable or satellite. It’s interesting to see the niche programming and types of programs ITVN and Akimbo Systems are trying to bring to consumers - it really does move us closer to a world where users will be able to watch whatever they want, whenever they want.