The multichannel TV market continues to grow, with almost three-quarters of homes in the UK now digital. As the market reaches near-saturation, however, and digital switchover becomes imminent, competition between platforms is fiercer than ever. Innovation has now become the main driving force, with additional products and services continually being rolled out. Personal video recorders, high definition TV, video-on-demand, downloads and TV by mobile phone now represent the new battlegrounds.

All of this has had a profound affect on how people are viewing TV, however, with advertising, in particular, facing new challenges. With a highly-fragmented audience and increasingly high-tech means of ad-avoidance, broadcasters and advertisers are turning more and more to TV sponsorship and interactive solutions to reach their audiences. While they eagerly await the new technology and help to drive sales, both personally and through word-of-mouth recommendation, they can also act as guinea pigs for advertising and interactivity in an ever-evolving landscape.

This report looks at attitudes towards TV viewing, home entertainment products, advertising and interactive TV, as well as seeing how these fit in with other areas, namely the types of holiday taken and booking methods, sports participation and interest, ownership of financial products and participation in selected leisure activities. It examines the correlation between personal video recorder (PVR) ownership and advertising attitudes, as well as awareness of programme sponsorship. Finally, it also looks at the habits and characteristics and how they can be effectively targeted.