Project Canvas has been given the green light by the BBC Trust after extensive consultation, the BBC has announced.
Canvas is a partnership between the BBC, ITV, Channel 4, Five, BT and TalkTalk to develop a common internet TV platform.
BBC Trust spokesperson Diane Coyle said: “People with a broadband connection will be able to access a wide range of on-demand content including BBC iPlayer, free of charge, through their TV sets.”
Adding: "We have, however, applied a number of conditions to the BBC's involvement in the venture, in recognition of the potential impacts on the market if Canvas is successful."
The conditions set by BBC Trust involve stating that users must be able to watch BBC programs without paying a subscription, that other broadcasters must have access to the platform and that the technical specifications must be published by BBC within 20 days of the approval.
The BBC Trust said it review the BBC's involvement in Project Canvas 12 months after the launch of the initiative.