Interactive Video Compositing (or IVC) is a technical interactive use of pre-rendered videos and still graphics to create a visual coherence permitting to use the whole work in an interactive concept.
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Differences with video compositing is in the final product. An "IVC" is produced with the goal to purpose an interactive experiment with rich media.
The most popular examples comes from video games using this before propagation of the real time 3D process, to mimic it. On internet, some websites (generally in flash) make use of this technique of visual rendering with some effects.
Some game in IVC
Websites in IVC
References
Interactive video compositing Wikipedia(Text) CC BY-SA