Most of Europe's national telecoms operators and alternate operators will offer IPTV (TV via the Internet, basically) by 2009, a new study by IDC suggests.
They predict a boom in IPTV services, particularly in France, Italy, Spain, Belgium, Luxembourg, the Netherlands and the Nordic countries, with around 6% of all Western European households subscribing to some kind of IPTV service.
They predict the services will provide on-demand and viewer-driven choice of content, as well as network-based video recorders.
Some telecoms operators including BT are testing IPTV software developed by Microsoft, though there are some teething problems with it.
Internet content delivery is definitely something that Sky and BT are working towards, though they are understandably cautious about speed of rollout, and even with increasing broadband speeds, I'd be very surprised to see significant Internet content delivery in the UK by 2009.

and yet all ISP's in the UK have some sort of cap, even the "unlimited" ones. There's no way IPTV can take off with restrictions in place with each ISP!