Despite the criticism concerning the value of TV content, research reveals several worthwhile aspects -- one of them is the opportunity to learn. In this article we explore the characteristics of interactive TV applications that facilitate education and interactive entertainment. In doing so we analyze research methods and empirical results from experimental and field studies. The findings suggest that interactive TV applications provide support for education and entertainment for children and young people, as well as continuous education for all. In particular, interactive TV is especially suitable for (1) informal learning and (2) for engaging and motivating its audience. We conclude with an agenda for future interactive TV research in entertainment and education.