This paper is both an analysis of the phenomenon of interactive television with background concepts of interactivity and television and a report of an empirical investigation among Dutch users of set-top-box ITV. In the analytic part a distinction is made between levels of interactivity in the applications of ITV. Activities labelled as selection, customisation, transaction and reaction reveal low levels of interactivity. They may be called ‘enhanced television’. They are extensions of existing television programmes that keep their linear character. Activities called production and conversation have the potential of higher interactivity. They may lead to ‘real’ interactive television as the user input makes a difference to programmes. It is suggested that so-called hybrid ITV– TV combined with telephone and email reply channels- and (broadband) Internet ITV offer better opportunities for high interactivity than set-top-box ITV. The empirical investigation shows that the demand of subscribers to set-top-box ITV in the Netherlands matches supply. They favour the less interactive applications of selection and reaction. Other striking results are that young subscribers appreciate interactive applications more than the older ones and that those with a low level of education prefer these applications more than high educated subscribers. No significant gender differences were found.