The Communications Market Report from UK telecoms regulator Ofcom details this year's trends across television, radio, online and telecommunications.
The report revealed more than 70% of homes in the UK now have access to multichannel television.
Freeview was the main driver for this growth, adding two million households in the last year.
The viewing share of digital-only channels was 30% during 2005, while the collective share of digital channels exceeded any one of BBC one, BBC two, ITV1, Channel 4 and channel Five.
Total television revenue were more than £10.5bn in 2005.
Radio listening has increased by 3% in the last five years.
And the report also found the gap between BBC Radio and commercial channels has widened; by March 2006, the BBC led the commercial sector by a margin of 30%.
Digital radio has also taken off, according to Ofcom, and an estimated 11% of homes now own a DAB digital radio set. Sales of the digital players have outstripped those of analogue radio.
Overall, digital listening accounted for 11% of all listening hours in 2005, compared to 6% in 2004.
About 11.1 million homes and businesses in the UK have broadband connections, according to the report, and more than eight million of these connections are through digital subscriber lines (DSL).
While the average broadband speed and consumer choice has increased, cost has continued to fall.
Ofcom believes intense competition between providers contributed to this price drop.
Their research also revealed the use of social networking sites, such as My Space or Bebo, has seen an increase; over 40% of adults with internet access have used these sites.
Suppliers are now offering "bundle" packages, providing television, telephone and video on demand services, according to the regulator.
Mobile phones continue to have played an important part in people's lives in the past year, says Ofcom.
As many households own a mobile phone as they do a landline, and 31% of calls made in 2005 were from a mobile.
Ofcom report 31% of consumers now consider their mobile phone to be their main telephone, an increase of 10% from 2004.
The mobile industry revenue grew by 9.7% in 2005 to £13.1 billion.