This has not been a sudden shift, and yet traditional media groups in the UK have, on the whole, been ill-prepared for it. Although many are offering internet services, they are tending to view them as sidelines rather than potentially dominant revenue streams. They are failing to think creatively enough and use the capability of the internet to provide new activities outside their traditional offering.

Episodes of Neighbours were regularly watched by 19 million at the show’s peak in 1990 and 22 million viewers attended Scott and Charlene’s wedding in 1987.

With shows that peak north of five million now considered a success, the challenges faced by television broadcasters are greater than ever. How do they ensure that Generation Y doesn’t desert TV altogether in favour of the latest video iPod, games console or happening website? And television is not the only medium that is feeling the heat as the young switch off their radios and walk past the newsstands in favour of social networking sites. Last week Ofcom, the communications regulator, estimated that 54 per cent of young people regularly use such sites, consequently spending less time watching TV, reading magazines and papers and listening to the radio.

So, is the battle for the teenage pound lost? Some media owners would appear to think so. The closure of titles such as Smash Hits, Sneak and Elle Girl is surely a sign that the white flag has been run-up. But should they really be neglecting the age group altogether? After all, those teenagers are going to grow up very soon and it cannot be assumed that they will suddenly discover an interest in lifestyle journals once they reach a certain age.

Strangely, magazine groups such as Emap and IPC seem to be doing very little to hold on to this slice of the market — even to the extent of deciding not to launch websites aimed at teens. They may not be able to compete with the celebrity gossip and user-generated content offered by some websites, but surely they can use their creative powers to find other ways to keep hold of young readers — free downloads on dedicated websites, for example?

Commercial radio faces challenges of its own. Advertising revenues are coming under immense pressure as teenagers opt for BBC Radio 1 or their mp3 players. Again, as the BBC’s Jenny Abramsky said at the recent Cambridge Radio Festival, the industry cannot simply assume that teens will discover radio in their late twenties. The point is that their cultural habits are now completely different. Broadcasters must find new ways of enticing them — be it through podcasting or improved online offerings.

Channel 4 Radio, although so far without a presence on a digital radio spectrum, has the right idea. It is using its key brands to attract teenagers to its radio website. It emerged last week that its Big Brother podcast had attracted more downloads than Ricky Gervais’s previously record-breaking podcast. More podcasts, plus online radio shows featuring other television hits such as Lost, are set to follow.

Radio-only groups do not have the luxury of being able to peg their offerings to successful TV brands. Some are providing podcasts and thinking more about new revenue streams. But they are not thinking big enough. Surely there is scope for exciting content deals to encourage more paid-for downloads on radio websites.

Mobile phones are another opportunity, and the recent announcement by Chrysalis, the owner of Heart 106.2, that it is to trial mobile downloads is a step in the right direction. Radio should recognise the huge internet capabilities of its medium and view the changing times as an opportunity to make tuning-in “cool” again.

As for television, falling viewer numbers and the gradual loss of teenagers mean that providers need to act fast. Apart from assuring that they offer the best programming, they have to rise to the challenge of MySpace by offering video-on-demand (VOD) services, and engage with YouTube, which is planning to offer music video downloads. Channel 4, again, seems to have the right idea. Next month it will launch a VOD service offering film downloads and a range of TV and music download offerings.

Traditional media groups must work harder at giving these fashionable young websites a run for their money. Now is the time to act.

Times Recommends

• Equitable Life halts £7bn sale on market turmoil
• Potential buyers emerge to save Woolworths staff
• Terrorist attacks close Bombay Stock Exchange