The latest figures show that 14% of S4C’s viewing hours now come through iPlayer, S4C Clic and YouTube, a proportion which is growing year on year.
An even greater increase had been seen in the 16 to 44 age range, said the channel, with a third now watching on digital platforms – although mainly through smart TVs.
The digital first ethos will be increasingly important, said the report, as S4C aims to “compete, innovate, and make the Welsh language prominent in the digital age”.
This will include “encouraging more online viewing”, an increasing use of live streaming, and keeping programmes on catch-up platforms for longer.
More digital-only content will also be commissioned, such as Yr Alwad – a vertical drama set to debut soon on S4C’s TikTok channel.
The changes are part of a need to curate content for varying audiences, says S4C, with content not always appearing on multiple platforms in the future.
“S4C may not be everything to everyone all the time, but our goal is to offer something for everyone,” said the report.
The strategy also notes a need to “move beyond filling a TV schedule… [to create] content that aligns with modern viewing habits”.
“S4C will still exist on traditional television while traditional television exists,” Mr Evans added.
“But we have to widen the audience who turn to S4C, because that’s the way to save the Welsh language.”
That means appealing to younger audiences, including those who may have grown up in bilingual households or are “less confident in their Welsh”.
“They are the viewers of the future,” added Ms Evans.
“What’s important is that we create Welsh language content that’s relevant to the way they live their lives, and appeals to them.
“Many of them currently watch all their content in English – that’s not what we want for the future of the language.
“We have to create content that appeals to them in Welsh. It’s already happening, but we need to do more.”