I am still at a point where I have to focus on the knitting, so right now the most I can do while knitting is listening to music that I need to learn, or participating in a conversation that does not take 100% of my brainpower.
EDIT: Revelation. I can also play idle/incremental games while knitting.
I usually knit with my mom and we watch local TV and chat a bit. When I knit by myself I usually put on a rerun but I mostly listen and not really watch the show (currently it’s Grey’s Anatomy). I’ve been thinking about listening to audiobooks.