Popular TV shows The Voice of China (top) and Where Are We Going, Dad? (above) have helped major video-streaming sites attract millions of viewers. [Photo/China Daily]

"The TV industry faces a serious challenge in retaining the younger generation. It needs to reform, despite its currently leading position."

The report was coauthored by professionals led by China International Television Corp's vice-chairman Zhang Haichao and CSM Media Research's deputy directing manager Zheng Weidong.

Forty-eight percent of TV viewers watched TV series and 15 percent watched news via the traditional medium, the report says.

Seventy-six percent of online video users watched feature films over the Internet, while movies shown on TV could hook viewers for 6.9 minutes on average.

Domestic TV ads generated 119 billion yuan ($19.43 billion) in 2013, the report shows.

The online video market generated 12.8 billion yuan in total that year. But revenues may surge since major video-streaming sites geared up to buy TV programs' broadcast rights in 2013.