IP camera typically feature better picture quality, advanced recording features, and the capability of connecting a larger number of cameras to the system, when compared with the older CCTV system videos are stored digitally using a network  video recorder, or NVR , rather than a physical DVR.

IP cameras capture video image, compress and transmit in digital format over the network. The recorder is programmed with IP addresses to receive these video streams and record to NVR (network video recorder) while HD CCTV, each camera signal has to be wired back to recorder.