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Figures show that Sky and Freeview are dragging the UK into the digital world. Sky's iron grip on sports has meant that consumers have little choice when it comes following their team on TV, while the BBC-sponsored Freeview has also shown massive growth. The UK boasts both the highest digital television penetration throughout Europe as well as the top figure by sheer numbers alone.

Indeed across Europe, digital terrestrial broadcasting now accounts for a quarter of those receiving digital TV. Sky unsurprisingly leads - half of Western Europeans receive digital broadcasts via satellite - but both cable and, notably, IPTV, are making inroads.

Together they pushed digital television figures past the 50 million household mark in the first half of this year.

Perhaps IPTV is the more interesting prospect. France leads the market here followed by Italy. Talking to Wanadoo, the Internet division

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of France Telecom - France's encumbent telco - the MD of strategy products and services, Marc Overton, told us that one of the reasons TV over broadband is so popular in areas such as Paris are the regulations governing the alteration of property. Residents find it very difficult to gain permission to alter the appearance of buildings, even with a simple satellite dish. Italy too has tough rules in this area, and not surprising, is second to France for broadband TV penetration.

However it should be remembered that the provision of the high speed Internet services necessary for carrying TV signals is focussed in urban centres: the most likely areas where buildings will have the historical importance to have regulations forbidding altering their appearance.

Even so, the fact that Sky itself bought UK broadband provider Easynet, shows how ill at ease it feels on its satellite laurels.

Canalys' predictions should further worry Murdoch's mammoth. It expects that more than 40 per cent of Western European will be only watching free digital channels by 2008.

'There is little sign that Europe is developing a homogeneous digital TV industry. So content owners must take a country-by-country approach, which is the complete opposite of the business models they use for the Internet and mobile industries. Language, population density, regulation, vested interests and rights ownership are all acting to keep the markets distinct,' said Steve Brazier, Canalys president and CEO.