S4C Digital Media and Wesley Clover, an investment firm held by Sir Terry Matthews, have jointly invested in the IPTV firm Inuk.
Inuk intends to use the money to develop their Freewire triple-play service, which allows its users to use broadband and telephony services along with the service to have broadcast quality T.V channels streamed directly to their PCs.
So far the technology is only available at student accommodations.
It makes it possible for those students to watch TV who have a telephone connection for their computers in their rooms but do not have TV aerial sockets.
Inuk is in a deal with Janet, the academic communications network to give to the students a package of 50 channels for 9.99 pounds per month.
With the venture S4C wants to bring to the people new methods of delivering entertainment.
S4C believes that Freewire Technology can become a mainstream digital television platform.
So far only 40,000 people signed up for its service but with the investment Inuk aims to improve the platform of technology and radically change the way people watch television.