Newspapers, magazines, television, radio, the internet - collectively termed 'the media' - play a vital and influential part of daily life in the UK. They inform and educate, question and challenge – and, of course, they entertain. And, with their long tradition of independence an freedom from state control, they boost democratic debate on the issues of the day.

The media have to satisfy a demanding audience. Television viewing remains the most popular home-based pastime among people in the UK; about 97 per cent of households have a colour television set. Radio is now enjoying a resurgence, with 90 per cent of the population regularly listening to the radio, a figure that is steadily growing. More daily newspapers, both national and regional, are sold for every person in the UK than in most other industrialised countries. Evidence of the internet's growing significance is the fact that 30-40 per cent of the population are now 'going online' and more than 15 million homes use the internet on a regular basis.

As the growth of the internet suggests, the UK media are being transformed by new technology. In broadcasting, greater diversity has been opened up by the arrival of digital satellite, cable and terrestrial transmission. Already, more than 7 million homes have extended the range of TV services available to them by signing up to digital TV platforms The roll-out of digital radio is gathering speed. Responding to the structural changes taking place, the Government is creating a more flexible regulatory framework for the communications sector, which is likely to be law by 2003.

The British Broadcasting Corporation (BBC), while maintaining its long-standing and international reputation as a public service broadcaster, is adapting to meet the commercial challenges of an increasingly competitive media environment Under new management, it is launching a range of services for digital television, digital radio and the internet. Its commercial rivals are also using the advent of digital to launch new services. ITV has introduced ITV2 and ITV Sport while Channel 4 has launched E4 and FilmFour. There continues to be a notable increase in the number of independent radio services, both analogue and digital.

All the UK major media owners are waiting to see if the new legislation, pencilled in for 2003, will relax rules governing cross-ownership between newspaper groups, television companies and radio stations. In any new legislation, the Government's goal is to balance the need for plurality of service provision and diversity of viewpoint with the desire of media owners to remain competitive and take advantage of commercial opportunities on the global stage.