Cloud TV is a software platform that can be installed on smart devices such as television sets, tablets, cell phones, media boxes and others. These software platforms eliminate the role of video service providers such as cable operators. Cloud TV platform dynamically converts, graphics, videos and interactive feeds into a single HTML or MPEG feed that is delivered to the set-top boxes on a unicast bandwidth. It is basically a merger of web content and TV into a single stream and is played through set-top boxes using IP connectivity. The cloud TV platform is configured from a remote server or a particular distribution center. With the cloud TV software a customer can view several channels with high definition picture quality. Additionally, these software offer capability to customize the subscription plan, record videos and upload media streams. Other features of a cloud TV include streaming videos on internet, high definition resolution, full function browsing on internet, email, online gaming, and support for social networking sites such as Facebook, MSN, Twitter, and Skype.

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Cloud TV is capable of delivering over-the-top (OTT) content to the customers in which there is no involvement of multiple system operators (operates multi cable and broadcast satellite). This helps the advertisers to promote their brands on television using interactive services. For instance in January 2014, ActiveVideo Networks in partnership with Brightline delivered interactive advertising of brands such as American Express and L’Oreal for Roku devices on quadrature amplitude modulation (QAM) – based set top boxes. Additionally, cloud TV platform are capable of offering video streaming services such as YouTube to their customers on the existing set-top boxes. For instance, UPC Hangary offers YouTube to the customers using cloud TV platform.

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