According to WinRumors, a demo is being prepared to show next week, but not all of the features will be revealed due to legal entanglements. but that not all of its features may end up being on display if certain deals aren't made in time. WinRumor's source claims, "Microsoft is currently in last minute negotiations to secure the necessary agreements in time."
An IPTV would work in concert with the many On Demand services that 360 users already enjoy, including Netflix, Hulu Plus, ESPN (as well as such channels as Sky in other regions of the world.)