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My ISP provides an option to pay for a fixed IP address. What are the advantages of a fixed IP address? This relates to a home connection which will be used for general browsing, movie download / streaming, and video calls.

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None that I can see in your scenario.
Fixed IPs make it easier to host a server on your network that is accessible from the internet, but they only make it easier. I've hosted a server for 5 years using a dynamic address. I use dynamic DNS to ensure my host is always available.

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If they make you pay for a fixed IP, usually that implies they allow you to hosting content from your network.

For example,
I host a media streaming application called Subsonic, Which lets me stream music from my home computer to wherever I am. I also use it to ssh into my system.

Note: Depending on you connection type, your IP rarely changes anyway. On Comcast, Ive had the same IP for about 2 years now, so for me theres no real need to pay for a static IP

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"If they make you pay for a fixed IP, usually that implies they allow you to hosting content from your network." What are the functional differences between one that does "allow" you to and one that doesn't? – barlop Sep 15 '11 at 20:11
Very good point: even if you get the IP via DHCP, it doesn't necessarily mean it changes often or changes at all. – vtest Oct 16 '11 at 2:56
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