English rugby fans would rather forget their team's recent match against Ireland. But for those Irish viewers who missed it, internet protocol television allows them to defy the schedules and download “live” programming over broadband networks when they choose. IPTV offers true video-on-demand and enhanced interaction with viewers. For those at home, that means full participation in interactive game shows and forums. Meanwhile, broadcasters could target programming and, importantly, advertising on a house-by-house or even set-by-set basis.

Investors are justifiably wary of utopian technologies, but they should seize genuine opportunities. IPTV builds on existing broadband infrastructure, with global connections forecast to double to 200m by 2008. Pay-per-view is an established consumer concept. US telecoms group SBC Communications' current $1.7bn partnership with Alcatel, the French networks builder, is an important endorsement of IPTV's potential by established companies. Developing content for IPTV, however, is risky and something many dotcoms got wrong with regards to the web. Lessons from the Napster debacle in the music industry should also be heeded. Above all, developing innovative ways to capture the full financial benefits of IPTV as Google has done with online advertising will sort winners from losers. In the UK, Amino Technologies and ANT, which is planning a listing soon, have already weathered one technology crash. They have built leading positions in developing the nuts and bolts of IPTV set-top boxes and browser software much as Cisco Systems and Netscape did for the web.