The number of TV licences sold has fallen by 256,000 in the past year, as people turn to alternative ways to watch programmes.
Everyone who watches or records live TV at home - be that BBC news or live football on Amazon Prime - or uses iPlayer is required to have a TV licence no matter what device they watch it on.
But, increasingly, people are turning to catch-up services such as Netflix, Britbox or Disney Plus where no licence is required.
"[There is] much greater pressures to traditional television viewing are a result of digital disruption and the move to catch up on-demand viewing along with on demand viewing over the internet," the BBC Television Licence Trust said in its annual report.
But while on-demand viewing is rising, so far for most people it's done alongside traditional viewing.
"However this on demand viewing typically sits alongside linear television viewing which remains the predominant way that the majority of audiences spend most of their time watching," the report reads. © Getty ImagesThe number of licences sold has dropped, despite the number of households rising
The BBC report indicated some 94% of households still need a TV licence, down just 0.66 percentage points on March 2019.
Overall, The report states 25.8million licences were sold in 2019/20, down from 25.9million the year before.
That's despite the number of households in the UK rising slightly over the period.
It's the second fall in a row - seeing 293,000 fewer homes sign up for a TV licence in the past year compared to 2017/18.
But overall, the BBC managed to increase its income from licences, as price hikes more than made up for the drop off in sales.
Gross revenue increased to £3,388million in the past year - up £43million - with the rise driven by the £4 increase in the price of a TV licence.