If you are watching 'internet TV' then what exactly is the server for? Are you storing the media, in which case the licensing really needs to be sorted before you start thinking about servers, as by the time you have licensing sorted whole generations of hardware will have come and gone.
If however you are just watching what is available to anyone with internet then are you actually needing a 'server' or is it more of a local caching and routing service?
Or is this a homework question with a hypothetical island, or are we talking about the Orkney's or similar.