The 100 metre by 10 metre red carpet costs £20,000, the dresses and jewels are worth an estimated £25 million and close to £300,000 has been spent on flowers.

The Baftas have grown rapidly since their inception as simply an industry awards dinner held by the British Academy of Film and Television Arts, an organisation to promote the film and television industries.

Although the British awards have always been the poorer relation to their cousins, the Oscars, the Baftas have become big business in recent years. Tomorrow's event has a record 28 sponsors, which is five more than last year.

Despite the Baftas being on the same night as the Grammys, Amanda Berry, the Bafta chief executive, said eight US television networks are expected to attend. Ryan Seacrest, best known for presenting American Idol, is flying over to do the E! Entertainment coverage instead of covering the Grammys.

“Ryan Seacrest's presence is massive news for us and should significantly raise our profile in the US,” said Ms Berry, highlighting that the cancellation of the Golden Globes was a significant factor in the increased US interest.

She added that, although there had been no rise in sponsorship deals because of the cancellation of the Golden Globes — as partnership deals were settled long before the cancellation — the rising American interest has attracted luxury goods brands, including Swarovski and Aquascutum, and increased the investment of the event's major sponsor, Orange.

Sponsors have also been attracted by last year's steep rise in viewing figures, up by a million on 2006. Hattie Magee, head of partnerships at Orange, said that the size of its sponsorship has “more than doubled”. to become one of Orange's most successful sponsorship deals.

“We think the value of our sponsorship is between three and four times our investment,” said Ms Magee. She also said the Baftas have led to a number of non-Bafta film-related sponsorship deals. Ms Berry introduced Orange to All Industry Marketing and together they launched Orange Wednesdays, the two-for-one cinema tickets deal which has proved a big success for the operator.

Ms Magee said the launch of Orange's IPTV service later this year could lead to the creation of an entertainment and style-focused television channel aimed at promoting the Baftas.

“We are considering launching a barker channel, which would feature short interviews with celebrities and promote the Orange Rising Star Award [The Bafta award for which Sienna Miller and Juno's Ellen Page are both nominated],” she said.

The Academy was formed in 1947 when a group of the most eminent names in British film production, including David Lean, Alexander Korda, Carol Reed, Charles Laughton and Roger Manvell, gathered in a room at the Hyde Park Hotel.

In 1958, the British Film Academy merged with the Guild of Television Producers and Directors to form The Society of Film and Television Arts.

In the society's early days, the chairman was film director David Lean who donated royalties from films including Bridge On The River Kwai and Doctor Zhivago, which served as an invaluable source of working capital.

From 1968 until 1997, the Bafta film and television awards were presented in one joint ceremony. The ceremonies have been split in two for the past ten years, which has contributed to raising its profile.

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