What Is an IP Camera?

An IP camera — short for Internet Protocol camera — is a digital video camera that sends and receives data over a computer network rather than through an analog signal on coaxial cable. Unlike older CCTV cameras, each IP camera has its own network address, meaning it can communicate directly with a recorder, a cloud server, or your smartphone without any special signal conversion in between.

Technically, the camera's onboard processor compresses video into a digital stream — typically using H.264 or H.265 encoding — and pushes it across your local area network (LAN) to a Network Video Recorder (NVR) for storage, or directly to the cloud. Most IP cameras today support Power over Ethernet (PoE), which means a single Cat6 cable carries both the network data and the electrical power to run the camera, eliminating the need for a separate power outlet at each mounting location.

In NYC, IP cameras are the go-to choice for new installations because they work with the structured cabling that most modern buildings already have — or that low-voltage contractors can run cleanly through conduit, inside walls, or along cable raceways without major construction. Buildings managed by co-op boards or condos often require DOB-compliant low-voltage work, and IP camera systems fit squarely within those guidelines. They're also far easier to expand: adding a camera to an analog system can mean rewiring; adding one to an IP system typically means plugging into an available PoE switch port.

If you're choosing between IP and analog (also called HD-TVI or AHD), IP wins on image quality, flexibility, and future-proofing. Analog may be worth considering only when reusing long runs of existing coaxial cable in a building where pulling new wire is genuinely impractical — though even then, hybrid recorders can bridge both worlds.