IP video can be sent by either downloading a data file or by continuously sending packets of data through a data network. When IP video is transferred as a file, the file is divided into packets which are sequentially numbered, transmitted, received, and reassembled in sequential order at their destination. When IP video is sent in streaming format, packets must be continuously sent along with time reference information. The time reference information is used to identify when the packet data is to be presented to the viewer. Packet transmission times can dramatically vary in packet data networks.

IP packet transmission systems may include the use of flow controls that can define when media starts and stops. Bandwidth controls may also be used to adjust the amount of data that can be sent through the network as the transmission capacity of the data network changes (becomes congested). Bandwidth control can be used by the sender to change the amount of compression (lower quality when bandwidth is limited).

This figure shows how to stream movies through the IP data networks. This diagram shows that streaming allows the media player to start displaying the video before the entire contents of the file have been transferred. This diagram also shows that the streaming process usually has some form of feedback that allows the viewer to control the streaming session and to provide feedback to the media server about the quality of the connection. This allows the media server to take action (such as increase or decrease compression and data transmission rate) if the connection is degraded or improved.