I work in corporate tech. We offer an IPTV solution. We have a specific device (not that different than a Firestick, but not a consumer device), and on it, we manage an application that delivers channels. Those channels come from a server room somewhere in the local area, from which channels provided by a legitimate provider (DirecTV, mostly) is collected and distributed. We pay the license for this, and it is a legitimate legal IPTV system.
Sling is IPTV, so is YouTubeTV. Any service that delivers channels through the internet, rather than through lines connected to your house is IPTV.
Some of those services ARE illegal. There are ways to get those channels over the internet without paying for a service, or for the licensing. Or some do have a service charge, but not one that pays the actual channel providers, but rather one that goes to the individuals building a system to pirate those channels. It is normal piracy.
If you are paying for it through an appropriate and legal channel, IPTV is legal. If you are getting it some other way, it isn’t.
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