Subscriptions to OTT TV services Netflix, Amazon Prime Video and Now TV have overtaken traditional pay TV services in the United Kingdom, according to figures compiled by media and telecom regulator Ofcom.
With the more attractive demographics accelerating the decline, the traditional pay TV is going to become even less popular.
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Within the 16-34 demographic, viewers are watching roughly the same amount of video content as all adults, however, less than half of that is broadcast content on TV.
More than a third of Netflix (38%) subscribers cite "to watch original series made by the provider" as a reason for signing up (up from 30% in Q1 2017). But the report shows YouTube - with the versatility of music clips, instructional videos, vlogging and long-form content - is claiming the biggest slice of the viewing pie. Television advertising income dropped by 7% to £3.9 billion (€4.4 billion).
Ofcom Chief Executive Sharon White said the rapid change in what we watch and how we watch had profound implications for the United Kingdom television industry.
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Walmart, of course, already owns a service called Vudu for which it paid $100 million almost a decade ago.
But UK broadcasters have a history of adapting to change.
It mirrors the pattern in the music industry where revenues from online streaming exceeded physical sales for the first time.
In the latest quarter there were fewer overall complaints about broadband and landline services but mobile and pay TV complaints stayed the same.
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