Cloud computing allows users to access data and applications from any device through the internet. It provides Infrastructure as a service (IaaS), Platform as a service (PaaS) and Software as a service (SaaS) through public, private or hybrid clouds. Internet Protocol television (IPTV) delivers video and audio over the internet to computers, televisions or mobile devices. The existing IPTV system has high server usage during instant channel changes but servers are idle at other times. A new system is proposed to dynamically shift resources between IPTV services using cloud computing and virtualization to better utilize servers.