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All UK terrestrial channels now have an online catch-up service, including Channel 4's 4oD, the BBC's iPlayer, ITV.com and Demand Five. However, it is proving difficult to earn revenue from the services warns a new report from Thinkbox, the TV analysis firm.

Despite this, the advertising market for traditional TV is booming, with almost 2.5 billion adverts being viewed in the first half of the year - an average of 42 per person.

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TV services are primarily used as a means of catching up with the broadcast stream," says the report, which suggests that both mediums can happily coexist.

In the first half of the year each UK citizen watched an average of nearly four hours of traditionally broadcast TV per day, a slight increase on the five-year average.

As well as this, according the ISP PlusNet, almost 10% of broadband traffic in the evening is TV streaming, and the BBC claimed in February that half a million shows were being watched every day on iPlayer alone.

Last week the Competition Commission extended the deadline for its ruling on the proposed Kangaroo on-demand joint venture between ITV, the BBC and Channel 4. This project is designed to earn revenue on content from all three organisations. The commission is yet to make a decision on whether the project will harm competition in the market.