Chancellor George Osborne has defended the MPs chosen to investigate the banking scandal amid claims the probe will be a "whitewash".

Labour MP John Mann said he and Tory MP Andrea Leadsom had been left off the panel as they were "too outspoken".
But Mr Osborne said the members chosen were "a really good set of MPs" who could "get to the bottom of what happened".
The inquiry was set up after the Barclays Libor rate fixing revelations.
Labour had called for a full judicial inquiry into the culture and practices of British banking but when that was defeated by MPs, leader Ed Miliband agreed to co-operate with government plans for a smaller-scale probe.
Mr Miliband, Mr Osborne, Prime Minister David Cameron and shadow chancellor Ed Balls are all understood to have had a hand in selecting the MPs that will sit on the investigation.
They include Labour's Andy Love and Pat McFadden, Conservative MP Mark Garnier and John Thurso from the Lib Dems - all members of the Treasury select committee.
They will be chaired by Tory MP and Treasury Select Committee chairman Andrew Tyrie. Five members of the House of Lords will also join the panel.
Mr Osborne said: "We want a quick and rapid inquiry and we have got now the Labour Party to agree to that.
"This inquiry will have powers to summon witnessed under oath, to search for documents, to get to the bottom of what happened in banks like Barclays.
"I think we have got some a really good set of MPs and some real experts in the House of Lords and get to the bottom of what happened and get to the bottom quickly so we can change the law and make sure it doesn't happen again."
But the committee was branded a "joke" by Labour's John Mann, writing on Twitter.
Mr Mann said he and fellow Treasury committee member Andrea Leadsom, a former Barclays banker, were "both available but too outspoken on banking".
He insisted his complaints were not just about being left off the Commission, telling BBC News he "couldn't believe" Ms Leadsom was not on it.
By Carole WalkerPolitical correspondent
The birth of the banking commission has been a painful one.
It survived Labour's attempt to establish an independent judge-led inquiry instead.
Now it's accused of being a whitewash before it's even begun taking evidence.
Left out are John Mann who challenged George Osborne over the price of a pasty, provoking a row which forced the Treasury to re-write part of the budget.
There's no place for Andrea Leadsom, a Conservative former banker who said Mr Osborne should apologise for accusing his Shadow Ed Balls of involvement in the rate-fixing scandal.
Two leading rebels on Lords reform Jesse Norman and David Ruffley are also excluded.
Mr Osborne says the enquiry will act swiftly to get to the bottom of what happened at the banks and propose changes to prevent future scandals.
Critics say its credibility is undermined by the effort to keep out the troublemakers.
Ultimately it will be judged on whether it does expose more of the murky behaviour of some bankers.
And come up with workable proposals to clean up the banks in future.
Ms Leadsom, who has spent most of her career in the banking industry, recently called for Mr Osborne to apologise for suggesting Ed Balls was involved in fiddling interbank lending rates.
Mr Osborne did not answer directly when asked if this was the reason she had been left off the committee, saying: "The most important thing is we get to the bottom of what happened and we fix it."
Mr Mann also accused the Tory chair of the new inquiry, Andrew Tyrie, of pre-judging the Libor rigging scandal that prompted the new inquiry: "Tyrie had already reached his conclusions before he whitewashed Libor scandal".
Mr Mann told BBC News he believed the inquiry's terms of reference were "too narrow".
"It's only looking at the Libor, not at other market manipulation, or who the victims are and speaking to those victims," he added.
He accused Mr Tyrie of having "written its conclusions already" and said it was "wishy washy" to be exploring corporate governance, pointing out this has already been looked into by the Treasury select committee.
The formal name of the inquiry, which is expected to report before the end of the year, will be the Parliamentary Commission on Banking Standards.
It will investigate the professional standards and culture of the UK banking sector, taking account of the regulatory and competitive investigations into the Libor rate fixing scandal.
BBC political correspondent Norman Smith said the Commission is expected to hold sessions through the summer in order to meet its December deadline, although these may not be public hearings.
He said it would be able to appoint a leading barrister, like Robert Jay QC who is currently cross examining witnesses to the Leveson inquiry into media standards, to assist the Commission in its questioning.
The peers on the committee have yet to be announced, but there are expected to be five members drawn from the House of Lords.
The membership of the committee, our correspondent said, had been kept deliberately small to ensure it remains focused.
The establishment of the committee is subject to a vote in both Houses of Parliament at the beginning of next week.


Plans to ban fast-food restaurants near Milton Keynes schools moved a step closer after a council backed plans to consult the public.

Milton Keynes Council is looking at setting up an "exclusion zone" for hot-food takeaways.
It would mean outlets would not be able to open within 400m (437 yards) of a primary or secondary school.
The council's cabinet backed the plans to consult residents. The plans will now go to the full council.
A report to the committee said the move could help back the council's public health strategy to make children healthier and tackle obesity.


Four candidates have now put their names forward to stand in the SDLP leadership contest.

South Belfast MP Alastair McDonnell, South Belfast MLA Conall McDevitt, the current Environment Minister Alex Attwood and mid-Ulster MLA Patsy McGlone have now all declared.
Two candidates are expected to stand for the post of deputy leader - Dolores Kelly and Colum Eastwood.
Mr McDevitt and Mr Attwood confirmed shortly before the deadline on Friday.
Mr McGlone has received ten nominations, Mr McDonnell eight, Mr Attwood seven and Mr McDevitt had six.
A successor to Margaret Ritchie, who stepped down last week, will be chosen at the party conference in November.
Mr Attwood said the SDLP would re-establish itself.
"It will not be the short term before we regain our previous strength. But the power of our ideas, values and the skills of our people remain and are essential to move our politics well beyond the progress of recent years," he said.
Mr McDevitt said: "There is an undoubted mood for real change throughout the party."
He added how he was looking forward to "outlining my vision for a strong, dynamic and progressive party which can reconnect with the many who are currently disillusioned with politics and one which speaks to the hopes, ambitions and dreams of everyone in this region and our island."
Mr McDonnell claimed to be the only candidate who could stop the party's decline and make it electable again.
Mr McDonnell told supporters at a meeting on Friday morning, that he has no intention of presiding over its further decline and eventually disappearance.
He said the party needed to be taken apart and put back together in a form fit for purpose in the 21st century.
Mr McGlone said all candidates agreed on "the need for change within the party".
"It is essential that the SDLP reasserts its objective of uniting the people of Ireland, a unity based on respect for our differences, and my first task if elected will be to outline a pathway to unity for all those living in North," he said.
Dolores Kelly obtained 15 nominations for deputy leader, whereas Mr Eastwood received five.


Rock band Def Leppard are recording new versions of their old songs to "wrestle" back control of their music.

The band will re-record their existing catalogue with "brand new, exact same versions" of their songs, previously released by Universal Music Group.
The Sheffield musicians
          told Billboard magazine
 they were at "loggerheads" with the label over download royalties.
Frontman Joe Elliott, said he was refusing to deal with Universal until "some kind of arrangement" was reached.
The 52-year-old, whose vocals grace hits such as Animal, Pour Some Sugar On Me and Rocket, said the label was "not prepared" to pay "a fair amount of money" when digital copies of the band's songs were sold.
He added that the band's contract with Universal meant the label could not do anything without their permission.
"So we just sent them a letter saying: 'No matter what you want, you are going to get no as an answer, so don't ask'.
"That's the way we've left it," he said.
While some artists re-record their back catalogue as a musical or technical endeavour, it is not uncommon for them to do it for business reasons.
By remaking their own hits, and retaining control of the master tapes, they can be more selective about where their songs end up and how much they charge for them.
Ultimately, it also allows artists to keep a much bigger share of the proceeds.
Prince threatened to re-record the 17 albums he released with Warner Brothers between 1978 and 1996, after failing to obtain ownership of his master recordings.
He split from the label around the time of the release of 1996's Chaos and Disorder, citing issues of control.
A re-release of the single 1999 followed, with a new arrangement, but no further recordings were issued.
Simply Red also re-recorded their entire Warner back catalogue to get around copyright issues.


Fifa has delayed a decision on whether to expand the World Cup to 40 teams, proposed as part of a package of reforms approved on Thursday.

The executive committee voted to get more women involved in decision-making, put term limits on senior officials, and publish their salaries.
Football's world governing body wants to be seen as "modern, trusted and professional" by December 2018.
But changing the World Cup format has been deferred pending a further study.
A proposed move to include 40 teams in the tournament from 2026 - up from the 32 that have taken part since 1998 - has been supported by Asia and African members.
However, a number of executive committee members, including England's David Gill, insisted the administration needed to provide a detailed report into the commercial and footballing implications before final approval is given.
Since scandal engulfed Fifa in May, when seven of its officials were arrested, it has come under scrutiny, with sponsors pressing for a change in culture.
Thursday's meeting of the organisation's executive committee - which was preceded by the arrests of two Fifa vice-presidents - outlined measures it hopes will restore its integrity by December 2018.
The proposals must be ratified by 209 member associations in February.
A timetable has been set for implementing the changes, which include:
"Fifa's executive committee have concluded a two-day meeting looking at reforms. They are determined they have the right recipe to reform the governing body.
"They want to be a trusted body by 2018, that's their ambition. They now have to convince the member associations in February they have the right reforms in place to be just that."
David Gill, Fifa vice-president: "The overall package of reforms has been very well thought out and they are very much a step in the right direction."
Francois Carrard, chairman of the Fifa reform committee: "Under the Fifa statutes there is only one woman who can be elected which is out of time. "We propose each continent must have at least one woman in the future council so instead of one we shall have six women."
Moya Dodd, vice-president of the Asian Football Association, on more female committee members: "We've seen a deluge of support from people in football and beyond. From Billie Jean King to UN women. Why? Because it's 2015, it's fair, and diversity leads to better decisions."


Women's Rugby World Cup hosts Ireland have named flanker Claire Molloy as captain for this month's tournament.

Molloy, who has won 53 caps, is set to appear in her third World Cup.
The 29-year-old takes over the captaincy from Niamh Briggs, who was ruled out with an Achilles injury.
"I'm incredibly humbled to be given the opportunity to captain my country, it's a massive honour to be selected to lead the team in a World Cup on home soil," said Molloy.
"I'm fortunate that I'll be surrounded by players with great experience, and I'm just really looking forward to pulling on the green jersey and running out with my team-mates."
The former Galway GAA player plays her club rugby with Bristol RFC in the UK, where she also works as a doctor.
She competed at the 2010 World Cup in England and the 2014 World Cup in France, and picked up Six Nations medals in 2013 and 2015.
Molloy has previous experience of leading her country, having captained Ireland during the 2013 Sevens World Cup in Russia.
"Claire is one of the most experienced players in the squad, and having competed at two previous World Cups, she's very much aware of the challenges that lie ahead," said Ireland head coach Tom Tierney.
"She has been one of the most outstanding performers for Ireland over the past number of seasons and has demonstrated her durability and consistency over the course of these campaigns.
"Since we began our World Cup preparations she has shown great leadership qualities and she thoroughly deserves the captaincy."
Ireland will take on Australia, Japan and France in their World Cup pool next month, with only the winners guaranteed a semi-final place.
The three pool winners will be joined by the best second-placed team in the semi-finals at Kingspan Stadium, with the final also taking place at the Ravenhill venue in Belfast.
Ireland women's World Cup squad
Forwards: Ashleigh Baxter (Cooke/Ulster), Anna Caplice (UL Bohemian/Munster), Ciara Cooney (Railway Union/Leinster), Ailis Egan (Old Belvedere/Leinster), Paula Fitzpatrick (St. Mary's College RFC/Leinster), Ciara Griffin (UL Bohemian/Munster), Leah Lyons (Highfield/Munster), Claire Molloy (Bristol/Connacht), Cliodhna Moloney (Railway Union/Leinster), Heather O'Brien (Highfield/Munster), Ciara O'Connor (Galwegians/Connacht), Ruth O'Reilly (Galwegians/Connacht), Lindsay Peat (Railway Union/Leinster), Marie-Louise Reilly (Old Belvedere/Leinster), Sophie Spence (Old Belvedere/Leinster)
Backs: Louise Galvin (UL Bohemian/Munster), Eimear Considine (UL Bohemian/Munster), Mairead Coyne (Galwegians/Connacht), Nicole Cronin (UL Bohemian/Munster), Jeamie Deacon (Blackrock College RFC/Leinster), Katie Fitzhenry (Blackrock College RFC/Leinster), Claire McLaughlin (Cooke/Ulster), Alison Miller (Old Belvedere/Connacht), Larissa Muldoon (Railway Union), Jenny Murphy (Old Belvedere/Leinster), Sene Naoupu (Harlequins FC), Nora Stapleton (Old Belvedere/Leinster), Hannah Tyrrell (Old Belvedere/Leinster)


The family of an 86-year-old woman who died following a crash in a Tesco car park have paid tribute to their "beloved wife, mother and grandmother".

Colombine Charnock was a passenger in a Skoda when it collided with four other vehicles and hit the supermarket building in Hungerford on Thursday 8 December.
She died in hospital the next day.
The family of Mrs Charnock, from Buttermere in Wiltshire, said she would be "missed by her many friends".
In a statement, they said Mrs Charnock was known to friends and family as Chris and had previously lived in London where she had been a hospital volunteer.
The family added that they were grateful for the "efficiency, kindness and help of the emergency services" on the night of the incident.
Thames Valley Police said a man in his 80s was driving the car at the time of the collision and that he sustained minor injuries.
No arrests have been made.


Wales could be without Rhys Webb and Leigh Halfpenny at the World Cup after they came off on stretchers in their 23-19 warm-up win over Italy on Saturday.

Webb, 26, suffered ankle damage at a first-half breakdown at Millennium Stadium in Cardiff.
Halfpenny damaged his right knee in the 70th minute.
Wales coach Warren Gatland said: "They don't look too good at the moment, but we'll just have to wait and see."
Webb underwent a scan on Saturday night and Halfpenny will do the same on Monday.
Gatland said Webb's injury was "not a break, but could be ligament damage".
He added: "If the injuries are bad we might have to bring in players, but we won't know until next week.
"You have to feel for them if they are ruled out. It's a massive blow for them and disappointing for us."
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Webb has established himself as Wales' leading half-back while 26-year-old Halfpenny is their main goal-kicker.
If Webb is ruled out, Racing 92 veteran Mike Phillips is a leading candidate to be recalled, having been omitted from the original 31-man squad.
On the eve of the match, Wales defence coach Shaun Edwards had said: "It would be a travesty to get someone injured so late."
Before the Italy game, Gatland said Scarlets back-three star Liam Williams would take a full part in training next week.
Williams has not played since having foot surgery in the summer and would be the leading candidate to take over from Halfpenny.
Versatile backs James Hook and Gareth Anscombe are also call-up candidates, although the latter has an ankle injury.


Leicester City fought back from 3-1 down to secure a stunning victory over a defensively frail Manchester United.

United were on course for a win when a Robin van Persie header and a magical Angel Di Maria chip put them ahead.
Leonardo Ulloa's header reduced the deficit before Ander Herrera's back heel extended United's lead.
But Leicester hit back through a David Nugent penalty and Esteban Cambiasso equalised before Jamie Vardy and an Ulloa penalty secured the win.
Manchester United manager Louis van Gaal will need to urgently address his team's defensive issues after their second-half capitulation, but he may have to do without both Tyler Blackett and Jonny Evans for their next game, against West Ham.
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Blackett was sent off for the foul on Vardy, which led to Ulloa's late spot-kick, and will be suspended on Saturday, while Van Gaal must await the result of a scan on Evans after the centre-back was forced from the field in the 30th minute and left the stadium on crutches.
Whether the Northern Irishman would have been able to stem Leicester's incredible turnaround had he remained on the field is open to question.
But in his absence, United paid a high price for their failure to defend, their failure to retain possession and their failure to maintain their composure in the final half hour.
A controversial second-half penalty was the turning point of an unpredictable and breathless match. Referee Mark Clattenburg allowed Vardy to barge Rafael just outside the box but, as the two players continued their battle in the area, the United defender brought down the striker and the official pointed towards the spot.
United's players protested - and captain Wayne Rooney continued to do so after the final whistle - but Nugent retained his composure to drill his 50th league goal for the club down the middle.
Within less than two minutes, United's defence lapsed again as former Inter Milan midfielder Cambiasso struck an unexpected and dramatic equaliser low into the net.
The home fans were buoyant, the Foxes were galvanised, and United were rocking. It almost seemed inevitable that the visitors would go on to lose a Premier League game for the first time after having led by two goals.
Ritchie De Laet dispossessed substitute Juan Mata on the right and galloped forward before finding Vardy, who calmly converted his first Premier League goal.
Better was to come for Leicester as they made sure of the three points - which move them to sixth in the league - when United conceded a second penalty and Ulloa stepped up to score his fifth league goal and spark wild celebrations.
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Before the match, Van Gaal had said he and his backroom staff had done their homework on the Foxes, pointing out to the four books he had at his disposal on Leicester's games so far this season.
The Dutchman's research might have revealed that Nigel Pearson's side - who have now picked up eight points from a run of matches against teams such as Everton, Chelsea, Arsenal and United - are not as obliging an opponent as last weekend's Queens Park Rangers side which gave him his first league win of the season.
That said, Leicester were hospitable in the first half. In three minutes of rapid-fire finishing, it was clear to all that Van Gaal has purchased players of exceptional talents to trouble the league's defences.
For the first goal, Van Persie was presented with a routine header - which went in off Liam Moore - for his first league goal of the season thanks to Falcao's perfect cross from the left.
The best was yet to come, however, as Di Maria lit up the half with an extraordinary second goal.
The British-record signing collected the ball in his own half and sucked in two Leicester players before finding Wayne Rooney on the left. The captain's return ball set the Argentine free inside the box and he executed a memorable chip which conjured memories of Karel Poborsky's Euro 96 goal for the Czech Republic against Portugal.
But for all of United's boldness up front, they remain vulnerable in defence and before the United fans' cheers had dimmed, Leicester scored.
Ulloa had missed two early chances, but Leicester's record signing quickly showed what an astute acquisition he has been when he connected with Vardy's cross.
United started the second half like a side intent on extending their advantage, and that is what they did when Herrera pounced on a Di Maria shot which was intended for the bottom corner.
But defending is United's weakness and errors at the back ensured Leicester became only the sixth team to score five or more goals against the Old Trafford club in the Premier League.
Leicester manager Nigel Pearson praises Esteban Cambiasso: "He had a very profound influence on the game. It's never easy for a player with such high expectations on him to come in against a side like Manchester United and run the show
"Before he had played 45 minutes of competitive football for us. He brings know-how, experience and quality."
Pearson on the victory: "It's massive. Obviously, it's not been an easy journey to come here, and now we are at the top, but it's all about staying here now."
Manchester  United manager Louis van Gaal: "We start last match against QPR very good with a new team, new players and then we played very well here, but we gave the game away.
"Leicester had five shots on goal, and that was it. These five goals were existing because we made errors in ball possession.
"We created a lot of chances and made superb goals but you have to do that over 90 minutes, not 60 minutes. It was not enough."
Match ends, Leicester City 5, Manchester United 3.
Second Half ends, Leicester City 5, Manchester United 3.
Attempt blocked. Jeffrey Schlupp (Leicester City) left footed shot from the right side of the box is blocked. Assisted by Matthew James.
Offside, Manchester United. Rafael tries a through ball, but Robin van Persie is caught offside.
Attempt missed. Ander Herrera (Manchester United) right footed shot from outside the box is close, but misses to the right.
Foul by Daley Blind (Manchester United).
Matthew James (Leicester City) wins a free kick in the defensive half.
Attempt missed. Jeffrey Schlupp (Leicester City) left footed shot from outside the box misses to the left. Assisted by Matthew James.
Offside, Manchester United. Marcos Rojo tries a through ball, but Robin van Persie is caught offside.
Delay over. They are ready to continue.
Substitution, Leicester City. Jeffrey Schlupp replaces Jamie Vardy because of an injury.
Goal!  Leicester City 5, Manchester United 3. Leonardo Ulloa (Leicester City) converts the penalty with a right footed shot to the bottom right corner.
Wayne Rooney (Manchester United) is shown the yellow card.
Tyler Blackett (Manchester United) is shown the red card.
Penalty conceded by Tyler Blackett (Manchester United) after a foul in the penalty area.
Penalty Leicester City. Jamie Vardy draws a foul in the penalty area.
Goal!  Leicester City 4, Manchester United 3. Jamie Vardy (Leicester City) right footed shot from the centre of the box to the bottom right corner. Assisted by Ritchie de Laet with a through ball following a fast break.
Rafael (Manchester United) wins a free kick in the defensive half.
Foul by Jamie Vardy (Leicester City).
Substitution, Manchester United. Juan Mata replaces Ángel Di María.
Attempt missed. Andy King (Leicester City) right footed shot from the right side of the box is close, but misses to the left. Assisted by Ritchie de Laet.
Substitution, Leicester City. Matthew James replaces David Nugent.
Attempt missed. Ander Herrera (Manchester United) right footed shot from outside the box misses to the left. Assisted by Marcos Rojo.
Substitution, Manchester United. Adnan Januzaj replaces Falcao.
Substitution, Leicester City. Andy King replaces Esteban Cambiasso.
Attempt blocked. Daniel Drinkwater (Leicester City) left footed shot from the right side of the box is blocked. Assisted by Jamie Vardy.
Attempt missed. Leonardo Ulloa (Leicester City) right footed shot from the right side of the box misses to the left. Assisted by Jamie Vardy.
Attempt blocked. Wayne Rooney (Manchester United) left footed shot from outside the box is blocked.
Ander Herrera (Manchester United) wins a free kick in the attacking half.
Foul by David Nugent (Leicester City).
Goal!  Leicester City 3, Manchester United 3. Esteban Cambiasso (Leicester City) left footed shot from the centre of the box to the bottom right corner. Assisted by Jamie Vardy.
Attempt blocked. Dean Hammond (Leicester City) right footed shot from outside the box is blocked.
Goal!  Leicester City 2, Manchester United 3. David Nugent (Leicester City) converts the penalty with a right footed shot to the high centre of the goal.
Penalty conceded by Rafael (Manchester United) after a foul in the penalty area.
Penalty Leicester City. Jamie Vardy draws a foul in the penalty area.
Attempt blocked. Leonardo Ulloa (Leicester City) header from very close range is blocked. Assisted by David Nugent with a cross.
Corner,  Leicester City. Conceded by Tyler Blackett.
Goal!  Leicester City 1, Manchester United 3. Ander Herrera (Manchester United) left footed shot from the centre of the box to the centre of the goal. Assisted by Ángel Di María.
Attempt blocked. Ángel Di María (Manchester United) left footed shot from outside the box is blocked. Assisted by Robin van Persie.
Attempt blocked. Wayne Rooney (Manchester United) left footed shot from outside the box is blocked. Assisted by Ángel Di María.


A protest group has won its appeal against building a new school on a field in Edinburgh.

Portobello Park Action Group (PPAG) won its appeal at the Court of Session to halt plans for a new Portobello High School on land at Milton Road.
The new Â£41m school was first proposed 10 years ago to replace the ageing 1960s building in Duddingston Road.
However, PPAG argued it was building on common good land. Edinburgh Council said it was "extremely disappointed".
Tom Ballantine vice chair of Portobello High School Parents' council, said: "I believe this is a very sad day for the Portobello Community.
"It's certainly a sad day for the young people of the area.
"This was a fantastic opportunity to get a wonderful new school.  It's too early to know where this will go next."
Legal advice
Paul Godzik, Edinburgh City Council's convener of education, children and families, said: "We are surprised and extremely disappointed with today's decision and I am sure the vast majority of the local community will share our disappointment.
"There remains a compelling argument for the new school.
"Although we are urgently considering the judgment with our legal advisors we are ruling nothing out at this stage.
"I have instructed officers to look at the possibility of a further appeal and also to explore all other options."
Alison Connelly, PPAG spokeswoman, said: "Today's decision is a crucial step towards securing valuable green space and parkland for future generations not just in Edinburgh, but throughout Scotland.
"The court's decision makes it clear that councils do not have the power to appropriate land such as Portobello Park, what's known as 'common good land', to use for purposes other than recreation."
"Whilst we understand and support the need for a new high school in Portobello, our campaign has always been about preserving green space", Alison Connelly continues.
"The proposal to build on Portobello Park has split people in and around Portobello and we appeal to the whole community now to pull together and urge the council to build a new high school at an alternative site."
"For the past six years, we have had an amazing amount of support from locals as well as people further afield and we are simply delighted with this positive outcome."


One of the biggest web attacks ever seen has been aimed at a security blogger after he exposed hackers who carry out such attacks for cash.

The distributed denial of service (DDoS) attack was aimed at the website of industry expert Brian Krebs.
At its peak, the attack aimed 620 gigabits of data a second at the site.
Text found in attack data packets suggested it was mounted to protest against Mr Krebs' work to uncover who was behind a prolific DDoS attack.
In a blogpost, Mr Krebs detailed the attack, which began late on Tuesday night and quickly ramped up to its peak attack rate.
DDoS attacks are typically carried out to knock a site offline - but Mr Krebs' site stayed online thanks to work by security engineers, who said the amount of data used was nearly twice the size of the largest attack they had ever seen.
"It was among the biggest assaults the internet has ever witnessed," added Mr Krebs.
Security firm Akamai said the attack generated such a huge volume of data by exploiting weak or default passwords in widely used net-connected cameras, routers and digital video recorders. Once in control of these "smart" devices the attackers used them to swamp the site with data requests.
"These new internet-accessible devices can bring great benefits, but they are also an increasingly easy and lucrative targets for cybercriminals," said Nick Shaw from security firm Symantec.
The security firm has carried out research which shows swift growth in the number of malware families scouring the net for vulnerable devices. Typically, said Mr Shaw, malicious hackers who take over gadgets are not interested in stealing personal data.
"Cybercriminals are interested in cheap bandwidth to enable bigger attacks," he said.
Mr Krebs speculated that the attack could have been prompted by an article he published, in early September, that named two young men allegedly associated with a service called vDos that carried out DDoS attacks for cash.
Soon after the article was published, Israeli police arrested the two men named by Mr Krebs. Released on bail, the pair were barred from using the net for 30 days.
Buried inside many of the data packets despatched towards Mr Krebs' site was text calling for the release of one of the men named in that article.
"I can't say for sure, but it seems likely (to be) related," said Mr Krebs.


The trial of a Washington Post journalist detained in Iran for almost 10 months on charges that include "espionage" will begin next week.

Jason Rezaian, a dual US-Iranian citizen, is scheduled to go on trial at a Revolutionary Court on Tuesday.
His wife Yeganeh Salehi, who was arrested alongside him in July but later bailed, and a third person have also been summoned to appear in court.
It is not clear whether proceedings will be open to the public.
The Washington Post's executive editor, Martin Baron, denounced what he called the "contemptible prosecution" of Mr Rezaian, who has been allowed only a single meeting with his lawyer - in the presence of official translators - to prepare.
Iranian state media quoted an unnamed judiciary official as saying on Tuesday that Mr Rezaian and two others would appear in court for the first time next week.
The journalist's lawyer, Leila Ahsan, told the Associated Press that she had confirmed the news with the court.
She said the other two defendants were Ms Salehi, who was a reporter for the Abu Dhabi-based newspaper The National, and a freelance photographer who worked for foreign media who has not been named publicly.
It was not yet clear whether the trial would be open, she added. Revolutionary Courts, which hear cases involving state security, normally conduct hearings in closed session.
Mr Rezaian, who had been the Washington Post's Tehran bureau chief since 2012, was charged in December but the nature of the charges was only revealed in April.
At the time, Ms Ahsan said he had been accused of espionage for allegedly collecting confidential information about Iranian domestic and foreign policy and handing it to "hostile governments".
Mr Baron urged Iran to "belatedly demonstrate that it can act with openness and fairness".
"The serious criminal charges that Jason now faces in Iran's Revolutionary Court are not supported by a single fact," he said in a statement on Tuesday.
"The proceedings against him have been anything but fair and open - if they had been, Jason would never have been subjected to outrageous prison conditions, obstacles to selecting a lawyer, limited time to prepare a defence, and an inadequate window on the case that Iran plans to bring against him."
The US State Department has said the charges are "patently absurd" and President Barack Obama has urged Iran to release Mr Rezaian.


Pressure is increasing on world powers and Iran to sew up a deal on Iran's nuclear programme after many months of negotiations.

If an agreement is struck, crippling sanctions which have affected everyday life in Iran will be lifted.
BBC Persian heard from ordinary Iranians about what they think will happen in the talks.
The nuclear negotiations affect every Iranian's life. The reason is inflation caused by sanctions.  Many families can no longer afford to live the way they used to.
If they don't reach an agreement now while President Rouhani is in office, both sides will face many troubles in the future.
Iran's economy has been crippled since the last set of sanctions on the oil and banking sectors.
I own three factories. Eight years ago they were working at full capacity, now all three are shut.
About 400 workers, technicians and engineers have lost their jobs. There are many people like me who used to have small manufacturing companies in industrial cities.
These days our cemeteries are growing faster and doing better than our industrial cities.
I was following every single minute of the last round of negotiations. If you remember, you could really see the stress on John Kerry's face. It shows Mr Obama needs to find a way to resolve this matter.
However strong the lobbies are on the other side, I believe the US president is determined to make a deal and he can achieve that.
I'm not optimistic. As our leader says we don't trust the US, the UK or the West in general. Now we see that some people in Iran have put their trust in them and think they can move things forward by negotiation, and the [Supreme] leader has agreed to that.
It's happening but personally, I believe the process will fail. It is just a question of when.
I don't think a deal is possible. There are a lot of entrenched groups in Iran like the Basij [volunteer paramilitary force] and most importantly those who are linked to the office of the Supreme Leader.
These groups won't let it happen and people will keep feeling the pressure.
I'm a farmer but I can't sell the rice I produce. It's not fair on our people.
I am a teacher. I'm following negotiations with excitement. But sometimes it feels like it's dragging on and on.
Either way I don't think we will witness any major changes straight away.
Change will take time to achieve. It won't happen the day after an agreement.


Cruise line Carnival has launched a wearable gadget that allows services on board its ships to be personalised for guests.

The Ocean Medallion can be worn as a necklace, clip or keychain - or carried in a passenger's pocket.
It will connect to onboard facilities, tracking meal orders or automatically unlocking guests' cabins as they approach the door, for example.
One analyst said it would have to be easy to use to entice holidaymakers.
Details of the project are being outlined at two events at the CES tech show in Las Vegas.
The Ocean Medallion will connect with onboard systems on the first specially modified cruise ship later this year via internet of things technology.
Other ships in the Princess Cruises fleet will then adopt the system.
It was a "great example of novel uses for smart devices", said Martin Garner, a tech analyst at CCS Insight.
"But, because people go on cruises as a relaxing holiday, the system will have to work flawlessly and be super-easy to use," he told the BBC.
He also noted that, just like upgrading a big hotel, the venture would likely be a costly one - which adds "a degree of risk" for Carnival.
The first ship to feature the system is the Regal Princess. 75 miles (121km) of cables, more than 7,000 sensors and 4,000 digital screens were installed in 10 days in Italy.
"It's going to almost be invisible to guests," the company said.
"They're not going to realise how much [technology] is in here."
Holiday resorts and cruise ship brands, including Carnival's rival Royal Caribbean Cruises, increasingly offer visitors access to various services via smart bands or wearable gadgets.
The undertaking could perhaps foreshadow what life in a future smart city or internet of things-powered shopping complex might be like.
But Mr Garner noted not everyone had the capabilities of a cruise line.
"City officials don't typically have the budget to do grand-vision schemes like the Carnival re-fit," he said.
"In fact, most cities are chronically short of budget."
Connection technologies built in to the Ocean Medallion include Bluetooth and near field communications (NFC), according to the travel firm.
This will allow passengers to:
The service will be offered first to passengers on the Regal Princess ship from November. It will then be expanded to the Royal Princess and Caribbean Princess ships in 2018.
Follow all our CES coverage at bbc.co.uk/ces2017


The format of the Highlands' Loopallu music festival is to change from next year.

Organiser have been unable to secure the continued use of the site's venue in Ullapool.
The 2017 festival, which will be its 13th year, will be held on the town's pier with support from Ullapool Harbour Trustees.
Organisers said this will mean the event will no longer offer a campsite and tickets will be restricted.
Dates for next year's event are 29 and 30 September.
Over the last 12 years, Loopallu's performers have included Paolo Nutini, Franz Ferdinand, Mumford and Sons and Jake Bugg.
This year's festival's headliners included The Wonder Stuff and The Stranglers.


Former BBC Radio 1 DJ Dave Lee Travis has been given a suspended sentence of three months for indecently assaulting a woman in 1995.

The 69-year-old had been found guilty of attacking a researcher who was working on TV's Mrs Merton Show.
Judge Anthony Leonard told Travis: "It was an intentional and unpleasant sexual assault."
Travis, of Aylesbury, Buckinghamshire, had been cleared of a 1990 indecent assault and a 2008 sexual assault.
He was being retried for these two charges after jurors could not reach a verdict on them at a trial earlier this year, during which he was cleared of 12 indecent assault charges.
Following sentencing, Travis said he was "mortified" and "really disappointed" over his conviction.
Travis, a former Top of the Pops presenter, cornered the woman in the corridor of a television studio where she was smoking and commented on her "poor little lungs" before squeezing her breasts for 10 to 15 seconds.
In a victim impact statement, which was read out at London's Southwark Crown Court ahead of his sentencing, the victim said: "I was a naive and trusting 22-year-old when I was subjected to an unprovoked and terrifying physical assault at my place of work.
"I was too paralysed with fear to confront my assailant."
The woman said she felt "lucky" that she was "physically resilient" enough to get on with her life "thanks largely to my colleagues".
She said the process of remembering the incident still took her back to "feeling like a scared, vulnerable young woman".
"Being called a liar and fantasist and being forced to recall the evidence in court has been painful," she said.
The woman, who chose to retain her anonymity, told the court that she would not claim compensation "now or in the future".
"I simply wanted to tell the truth," she said.
Judge Leonard - who suspended Travis's sentence for two years - said: "It was an intentional and unpleasant sexual assault.
"You took advantage of a young woman in a vulnerable position whose job it was to look after you that day."
However, the judge said the prosecution's case that Travis had "a propensity to commit indecent assaults" had "not been made out".
Travis said after leaving court that the case should never have been brought against him.
"With millions of pounds of taxpayers' money, thousands of hours of police resources, the judge accepted today that the Crown had failed to prove their case against me - namely that I was a sexual predator," he said.
On Tuesday, the jury at Southwark Crown Court found Travis not guilty of the 1990 indecent assault and could not reach a verdict over the sexual assault charge.
Travis, who was tried under his real name David Griffin, appeared on BBC Radio 1 for more than 25 years until 1993 and was a regular host of Top of the Pops.


NI's Deputy First Minister Martin McGuinness has confirmed he will meet the Queen again when she visits Belfast.

The Queen and the Duke of Edinburgh are to come to Northern Ireland between 23 June and 25 June.
It will be the Queen's first visit since 2012, when she came as part of her Diamond Jubilee celebrations.
During that visit, Her Majesty and the Sinn FÃ©in MLA, a former IRA leader, shook hands for the first time.
In April, Mr McGuinness toasted the Queen during a banquet at Windsor Castle as part of the state visit of Irish president Michael D Higgins.
The deputy first minister said he would be meeting the Queen "as a representative of all our people".
"The visit by Queen Elizabeth is an opportunity to demonstrate mutual respect and to further build on the process of reconciliation," he said.
"Despite the current difficulties, I am determined to provide positive, forward-thinking political leadership."


Tony Pulis has been appointed head coach of Premier League strugglers West Bromwich Albion.

Pulis, 56, has agreed a two-and-a-half-year deal with the Baggies and will take charge after Thursday's Premier League game at West Ham.
The ex-Stoke and Crystal Palace manager is the club's fourth head coach in a year, following Alan Irvine's sacking.
Pulis said: "Every successful club is built on unity and that is what I shall strive to help bring to Albion."
Pulis, who managed Stoke from 2006 to 2013, steered Crystal Palace clear of relegation trouble last term.
A strong second half of the campaign saw them finish 11th, while Pulis won the Premier League manager of the year award, but he quit two days before the start of this season.
He joins West Brom with the club just one point above the relegation zone after former head coach Irvine was placed on gardening leave on Tuesday having won only four of his 19 league games in charge.
Pulis added: "We need everyone together from top to bottom - the supporters, all the staff, the players, everyone who has an interest in the club's welfare.
"With that, we can go forward together and hopefully take this club up the Premier League."
The 56-year-old will meet with his new players on Thursday before watching the game against West Ham from the stands.
West Brom will retain their continental structure - in which the head coach works to technical director Terry Burton and sporting director Richard Garlick, who in turn report to chairman Jeremy Peace.
But Pulis, who is expected to bring in Dave Kemp whom he worked with at Palace and Stoke as his assistant, has been assured he will have full control of all first-team matters, including the buying and selling of players.
Burton said: "We are delighted to secure a man of Tony's calibre and proven ability.
"He made it clear that this position excited him and that he was eager to get back into the business of winning Premier League points - and there are few who know how to do it better."


Mae perchennog a gweithiwyr meithrinfa oedd wedi'u cyhuddo o greulondeb at blant wedi eu cael yn ddieuog o'r holl gyhuddiadau yn eu herbyn.

Roedd perchennog meithrinfa Bright Sparks ym Mhort Talbot, Katie Davies, a dwy o'r gweithwyr, Shelbie Forgan a Christina Pinchess, yn gwadu honiadau o greulondeb at blant.
Cafodd ymchwiliad ei gynnal yn dilyn honiadau gan bedwar myfyriwr bod plant yn cael eu cam-drin yn y feithrinfa.
Bu'n rhaid i'r feithrinfa yn Nhaibach gau'r llynedd yn dilyn y pryderon.
Cafwyd Ms Davies, 32, Ms Forgan, 22, a Ms Pinchess, 31, yn ddieuog o fod yn greulon tuag at berson dan 16 oed.
Yn ystod yr achos yn Llys y Goron Abertawe, clywodd y llys bod myfyrwyr wedi "gorliwio" yr hyn a welsant yn y feithrinfa.
Cyhoeddwyd hefyd bod Ms Davies wedi gwneud cwyn yn erbyn dau o'r myfyrwyr i'w tiwtor.
Fe ddiolchodd y Barnwr Geraint Walters i'r rheithgor am eu gwaith yn yr achos.
Ychwanegodd: "Ar ôl clywed y dystiolaeth, gallaf ddweud bod hwn yn amlwg yn achos oedd angen ei ymchwilio - nid oes amheuaeth o hynny."
Dywedodd y Barnwr Walters hefyd nad oes "dim cwestiynau" i'w ofyn am y ffordd y mae'r heddlu wedi cynnal eu hymholiadau.
Ar ddiwedd yr achos, fe safodd y tri diffynnydd ar risiau tu allan i'r llys tra darllenodd y cyfreithiwr, Giles Hayes, ddatganiad ar eu rhan.
"Mae'r tair sy'n sefyll nesaf i mi yma yn gymeriadau hollol di-fai, ac mae eu bywydau wedi cael eu troi ben i waered.
"Roedd Bright Sparks yn amgylchedd gwych i blant ac roedd yn fusnes a gafodd ei sefydlu i ofalu am blant.
"Roedd hwn yn achos, yn ein barn ni, oedd yn galw am ymchwiliad llawer mwy trylwyr cyn iddo ddilyn y broses i'r llysoedd troseddol.
"Mae'r tair merch yma yn gobeithio eu bod yn gallu rhoi'r achos hwn y tu ôl iddynt er mwyn symud ymlaen gyda'u gyrfaoedd."


A school has been issued with a government warning over its finances, shortly after two of its board members resigned, the BBC has learned.

In March, the Isle of Portland Aldridge Community Academy's (IPACA) accounts revealed it had taken government loans of more than Â£500,000.
The Department for Education (DfE) said at the time it was "a going concern".
Dorset County Council, the academy's co-sponsor, said it was unaware of the latest development.
Regional Schools Commissioner Rebecca Clark - who IPACA said would comment on behalf of the school - has declined to comment until the financial notice to improve is published on the DfE website.
The DfE has also refused to comment - but the BBC has seen correspondence, issued in August, confirming the warning.
IPACA - an independent trust - is also sponsored by the Aldridge Foundation.
From January it is set to join London-based Aldridge Education - a multi-academy trust.
Chairman John Tizard and vice-chairman Matt Longshaw of IPACA board of governors resigned earlier this week over the changes.
Mr Longshaw said he did not believe Aldridge Education had "the best interest of the school at heart".
About 1,000 parents have also signed an online petition against the plans, and about 40 gathered for a protest at the site on Wednesday.
However, Aldridge Education said IPACA governors had voted to join the trust and added all of its schools retained their individual community identities.
The school, which caters for children aged four to 19, opened in 2012 and previously operated across three sites.
It moved to former Ministry of Defence building Maritime House in September.
Governors previously said the delayed move put it under "significant financial pressure" because of the costs involved in working across three sites.


The father of the Jordanian pilot who was burned to death in a cage earlier this year by the so-called Islamic State group has called for an investigation into the circumstances of the crash that led to his son's capture.

Mr Safi Yousef al-Kasasbeh told the BBC there were still too many unanswered questions surrounding the capture by IS of his 26-year-old son, Lt Moaz al-Kasasbeh, whose F16 jet apparently malfunctioned in skies above territory held by the group.
Lt al-Kasasbeh parachuted from his crippled plane and was captured shortly afterwards by IS around 27 December last year. It is believed he was burned to death, some seven to 10 days later, in early January 2015.
His father said: "I'm still requesting from the military to hear the last two minutes of what Moaz was saying before his plane crashed. We still don't know how it happened."
Mr al-Kasasbeh said he had been told that his son's plane had suffered either a catastrophic technical failure or had been hit by a ground-to-air missile.
"I need to know exactly what happened," he told me as we talked at the family home overlooking the Dead Sea, outside the Jordanian city of Karak.
"I also want to know what happened after he landed in the water in his ejector seat. He was in the water for an hour and 10 minutes and then IS captured him. They [the US-led coalition] should have rescued him or at least circled above him with helicopters to protect him but they just left him."
The Islamic State group filmed its murder of Moaz al-Kasasbeh for propaganda purposes. Footage showing the pilot being burned to death formed part of its film called Healing the Believers' Chests. IS apparently showed the film on a giant screen to crowds in the de facto capital of its so-called "caliphate".
It is believed that IS engaged in talks with the Jordanian government through intermediaries. Apparently there was a possibility of a swap in which the IS hostages, Lt al-Kasasbeh and the Japanese freelance journalist Kenji Goto would be exchanged with Sajida Atrous al-Rishawi, who was convicted for her part in the hotel bombings in Amman on 9 November 2005.
The attacks, in which 60 people died, were orchestrated by al Qaeda in Iraq, an earlier incarnation of Islamic State. Al-Rishawi was captured after failing to detonate her suicide belt. Her husband Ali Hussein Ali al-Shamari successfully detonated his device, killing 38 people at a wedding party in the SAS Radisson Hotel.
Al-Rishawi was hanged by the Jordanian government on 4 February 2015, a day after IS released film showing the murder of Lt al-Kasasbeh. The group is believed to have beheaded Mr Goto some days earlier, on 30 January.
Mr Safi Yousef al-Kasasbehh said his large family was still struggling to come to terms with the murder of his son. He said, "Moaz was my favourite son, I love them all. But he was the most precious. He was the most handsome one and the cleverest.
"He was the fourth one and he was the closest one to the family from amongst his other brothers. He was very smart and knew the Koran by heart.
"What happened to him was shocking, like a thunderbolt. When we heard he was arrested - that shocked us all. I still cannot believe it. They announced on 3 February that he was dead but he had been killed a month earlier. We're still in shock.
"My relatives and all the tribe will never forget Moaz. He was unique. When he graduated to become a pilot he was always the top. The air force entrusted him with a lot of responsibility even though he was young. The grieving for Moaz will last forever."
Mr al-Kasasbeh disclosed how he had wanted his son to become a doctor, "I always wanted Moaz to study medicine in Moscow and I even secured a place for him there. But he never wanted that; he wanted to become a pilot and that's what he told his mother and his uncles.
"It was his dream from high school to become a fighter pilot." Lt al-Kasasbeh was posthumously promoted to the rank of Captain.
On 9 November 2015, Islamic State said it had carried out a mass shooting at the Jordanian International Police Training Centre in Amman. At least five people died after being shot by a Jordanian policeman, named as Captain Anwar Abu Ubayd.
Ubayd, who was killed during a shoot-out, was not known to have any terrorist links. IS claimed the attack was carried out to mark the 10th anniversary of the Amman hotel bombings.
Listen to Andrew Hosken's report on The World Tonight


It is likely to prove to be one of the biggest challenges this year.

No, not getting your hands on a ticket to the premiere of Star Wars: The Force Awakens. Much, much more difficult will be to avoid all mention of the film anywhere for the next few weeks.
If you are one of the people not so keen on catching the latest installment and wanting to avoid all reference to it, you have already failed by clicking on this article.
But while you're here, you might as well carry on reading: here are some invaluable pointers for how to keep your head down until the hype has passed.
Or Chad. Or North Korea.
If online interest in the film is any indication, you're in deep trouble if you're not into Star Wars and live in the US, Canada, the UK, Australia, New Zealand and (for some reason) Hungary - that's where interest is at its most feverish.
A quick look at the rest of Google's map shows a bigger picture though:
Some pretty big areas don't really care that much about Star Wars, so you could move there. Most of Africa doesn't seem too bothered, and the same goes for central America, where the weather is quite pleasant at this time of the year.
(For the record - the map is likely to be blank in some countries due to a lack of data available to Google, rather than an aversion to sci-fi.)
The film's page on the IMDb film database shows it is opening in more than 80 countries in the next month - China is the last to get it on 9 January.
Incidentally, if you are in Bhutan, we can't say whether The Force Awakens will be shown there - the country's two cinemas have not yet replied to the BBC.
This goes without saying.
Even traditional art-house cinemas in London have jumped on the bandwagon, with some offering screenings from midnight on Thursday. The regularity of screenings makes listings for some cinemas look more like bus timetables.
In the middle of this, however, is the Institute of Contemporary Arts in central London, where Friday night will see a Q&A on Catalan avant-garde cinema.
A spokeswoman for the ICA told the BBC it will not be screening the film at any point, nor will it be showing any Star Wars trailers - they show trailers only for independent films that will be screened at the venue.
Quite a few people are expected to see the film. Some might reasonably be expected to discuss it afterwards, so avoiding humans altogether is perhaps the best policy.
Having said that, not as many people might see it as you would expect.
In the US, it is opening in 3,900 screens, and while that sounds like a lot, it is actually some 500 fewer than for the third Twilight film in 2010. This had led Forbes to speculate that The Force Awakens may not end up being the highest-grossing film of all time.
If you're going to avoid all humans, it might be wise to do so online too.
As of 10:50 GMT on Monday, the film was not a trending topic on Twitter - at least not yet. That honour, in the US at least, belongs to #ReplaceAWordInASongWithJelly - among others. But it is surely a matter of time.
As it stands, here's a challenge: go online, try and look up some news, scroll through your Facebook feed. See how long it will take you to find a reference to Star Wars. When we tried, it took us only 37 seconds.
This may seem like an extreme option. But it is worth considering.
Even if you discover another cinema not showing The Force Awakens, or find a new friend uninterested in space opera, on your way to seeing an alternative film, you may still spot posters, toys, a make-up range, jewellery or a kickboxing set bearing the Star Wars name.
Simply living in Los Angeles, ahead of the premiere on Monday, will have disrupted your life - part of the city is closed for four days in a move that's been called "much more extensive than for a typical Hollywood movie premiere".
It's going to be a long winter away from Star Wars. Pick a good thick book.


Ex-England captain Alastair Cook hit an unbeaten 39 for Essex against Somerset in his first Championship appearance since standing down as Test skipper.

Cook took two slip catches in the first session as the visitors bowled Somerset out for 209 in Taunton.
In bowler-friendly conditions Peter Trego (48) top scored as the home side struggled to deny Essex's bowlers.
Although Nick Browne was bowled cheaply by Craig Overton, Cook held out under heavy cloud cover as Essex closed 60-2.
Cook returned to the hosts' line-up after being sidelined for their first match against Lancashire with a hip injury, and the England opener took two low catches at first slip as Marcus Trescothick and new Somerset captain Tom Abell were both dismissed by Ravi Bopara.
Dean Elgar (34) and James Hildreth (36) shared a 54-run third-wicket partnership, before the former was stumped off spinner Ashar Zaidi.
Trego's lone resistance was ended as he top-edged Simon Harmer to Zaidi but the hosts managed to pick up a solitary batting bonus point as they edged past 200.
After a short delay due to bad light and surviving a tight lbw call, Cook sent Jamie Overton for three consecutive fours as he eased into the match.
Roelof van der Merwe ensured Somerset ended on a high, as he bowled Tom Westley for 10 with the final ball of the day.
Somerset all-rounder Peter Trego said:
"I think it's probably slightly swung in their favour.
"It's the old cricketing cliché: you can only see how good a pitch is when both sides have batted on it and Alastair Cook is a phenomenal player and he's making life look relatively easy out there and I don't think any of us did.
"It's a sporting wicket. There's certainly something there for the bowler, but you get rewarded for quality batting."


Young people are spending more time playing and socialising online than watching television programmes, according to an annual survey tracking children's media behaviour in the UK.

Staff at research agency Childwise described it as a "landmark change".
Among those watching TV, the Netflix on-demand service was more popular than any conventional television channel.
There was also a surge in children's ownership of tablet computers, up by 50% compared with last year.
The annual media monitoring report, based on a sample of more than 2,000 five to 16-year-olds, has been following children's viewing behaviour since the mid-1990s.
This year's findings from Childwise are being claimed as a tipping point with children switching from conventional television to spending time online.
The average time spent online is now three hours per day, compared with 2.1 hours watching television.
3 hours
amount of time 7-16-year-olds spend online each day
4.8 hours
time 15-16-year-olds spend online
2.1 hours  spent watching TV each day - down from 3 hours in 2000
60%  watch TV via a phone, tablet  or laptop
38% do most of their TV viewing on demand
Among older teenagers in the survey there is an even more pronounced switch away from television, particularly at the time when it is broadcast.
Among 15 to 16-year-olds, less than a quarter would typically watch television as it is broadcast, rather than on a catch-up or on-demand service or through YouTube.
Among this age group, 32% had no favourite television programme.
And across the whole age range, none of the programmes identified as favourites, such as Hollyoaks and Pretty Little Liars, had been seen by more than 2% of young people in the previous week.
Boys had a preference for sport, such as Match of the Day, while girls preferred reality shows like Made in Chelsea.
Among television services, Netflix emerged as the most popular choice - overtaking all the conventional channels.
Asked about their viewing in the previous week, 50% had watched programmes on Netflix, compared with 47% for ITV1 and 46% for BBC1, the most popular television channels.
Young people still showed a clear preference for watching television on a television set - with only a relatively limited number watching programmes on mobile phones.
The study shows how much young people's lives are immersed in online activity and computer devices and how these forms of media are overlapping.
While the average time for online consumption is three hours per day, among 15 to 16-year-olds it rises to almost five hours.
The most common way of accessing the internet is the mobile phone, which is described as "near universal" among young people.
But particularly among younger children, there has been a sharp rise in access to tablet computers, now owned by 67% of youngsters, with the iPad by far the most widespread.
For the first time, tablet computers have overtaken other types of computer, such as laptops or desktops.
Children go online to watch videos, listen to music, play games and research their homework - and older children use it for social networking, particularly among girls.
The study reveals that however young people are accessing the internet, YouTube is the dominant destination.
The video-sharing website is used every day by almost half of all five to 16-year-olds, most often through a mobile phone or tablet, to watch video clips, listen to music and use games-related material.
They particularly want to see "funny" content on YouTube, but about a third watch "how-to" videos, including how to play computer games.
YouTube is also a popular way of watching television programmes, used by 74% of young people, compared with about 40% of this age group who watch programmes through the BBC iPlayer, which is the most popular of the broadcasters' on-demand services.
Apart from YouTube, other popular online destinations are Snapchat, Instagram, Minecraft and Facebook.
The study also suggests the technologies that are disappearing. A shrinking number of young people listen to music via a CD player, with mobile phones now the leading medium.
It also warns that printed magazines are losing their appeal, with diminishing numbers of regular readers.
Simon Leggett, Childwise research director, said that this year's survey showed that "TV viewing has been redefined".
"Growing access to the internet at any time and in any place, and a blurring of television content across channels and devices, brings a landmark change in behaviour this year.
"Children are now seeking out the content of their choice. They still find traditional TV programmes engaging but are increasingly watching them online and on-demand or binge watching box sets."


A record £66m National Lottery jackpot will be shared between two ticket holders who each matched the six winning numbers, Camelot said.

The winning numbers were 26, 27, 46, 47, 52 and 58. The bonus number was 48.
The jackpot, announced live on BBC One, comes after 14 consecutive rollovers found no winner.
TV presenter Noel Edmonds pushed the button for the lottery draw, more than two decades after presenting the first National Lottery show in November 1994.
Even though Saturday's prize total is to be shared, if each ticket is held by an individual, their £33m prize would make them the joint biggest National Lottery winners.
National Lottery organisers Camelot said its website had struggled following "unprecedented" demand for last-minute tickets ahead of the draw.
The company said it had expected to sell at least 400 tickets per second online and in shops in the hours before sales stopped at 19:30 GMT.
New rules meant the jackpot was guaranteed to be won, even if no-one picked all six numbers, as those who match five and the bonus ball were next in line for the top prize.
The new rules guaranteeing there would be a payout were brought in for the first draw after a jackpot reaches £50m.
The jackpot hit £50.4m in Wednesday's draw.
The previous largest National Lottery jackpot was £42m, which was shared between three separate ticket holders in January 1996.
However, Saturday's prize is still dwarfed by the the biggest UK win in the Euromillions lottery, a draw where prize money comes from tickets sales in several European countries. Colin and Chris Weir, from Largs, North Ayrshire, collected £161.6m in 2011.
Source: Camelot Group
Wednesday's jackpot followed the number of balls in the draw increasing from 49 to 59 in October.
In that draw, two tickets matched five numbers and the bonus ball - winning £74,900 each.
According to mathematicians, the extra balls have reduced the odds of a player getting six numbers from about one in 14 million to one in 45 million.
Dr Elizabeth Williamson, an ambassador for the Royal Statistical Society, said ticket holders were more likely to:
However, Camelot says the rule changes have increased the chances of becoming a millionaire because they have also seen the introduction of a millionaire's raffle.
The biggest single-ticket National Lottery win before Saturday's draw was £22.5m, which was shared by work colleagues Mark Gardiner and Paul Maddison from Hastings in 1995.
The biggest individual winner was Iris Jeffrey from Belfast, who won £20.1m in 2004.
Saturday also saw a record-breaking lottery draw in the United States, with $900m (£619m) up for grabs in the Powerball game, which is played in 44 states, Washington DC, and two US territories.
The odds of winning that prize were one in 292.2 million.
Officials said there were no winners and the jackpot would rise to $1.3bn (£895m) for Wednesday's drawing.


North America has officially run out of its stock of old net addresses.

This week the American agency which oversees net addresses in the region gave out the last block of these vital net components.
It said companies in North America should now accelerate their move to the latest version of the net's addressing system.
Now Africa is the only region with any significant blocks of the older version 4 internet addresses available.
The older addressing system, called IPv4, was created when the net was being set up in the 1970s. The system can support up to 4.3 billion addresses but the massive growth of the online world has swiftly depleted this.
The successor addressing system, known as IPv6, can handle a vast amount of addresses and is unlikely to ever run out. IPv6 has been available since 1999 but only now are large numbers of firms starting to use it.
"Organisations should be prepared to help usher in the next phase of the internet by deploying IPv6 as soon as possible," John Curran, head of the American Registry for Internet Numbers (Arin) told tech news site The Register.
Shifting to IPv6 can be tricky for some ISPs because, for the time being, they have to support both old and new addressing schemes. Running both and translating from one to the other can break some services and introduce delays that irk customers.
Afrinic, which hands out net addresses in Africa, currently has about 2.3 million IPv4 addresses left and these look set to run out by early 2019, statistics suggest. Stocks of IPv4 addresses ran out in other regions several years ago.
Axel Pawlik, managing director of Europe's net address administrator Ripe NCC, said Arin exhausting its stock of IPv4 addresses was a "landmark moment in the history of the internet".
"This means that organisations across North America can now only obtain IPv4 addresses by trading for them," he said. "For networks looking to grow, this will increasingly create pressure in the immediate future. "
The steady depletion of IPv4 addresses has kicked off a market in buying and selling chunks of addresses that large or defunct companies no longer use.
The Arin depletion might spark a significant rise in prices, suggests research by the IPv4 Market Group which acts as a broker for firms with addresses to sell.
The sale of several big blocks of addresses from very large companies including Merck, Lilly, Dupont and Nortel could spell problems for anyone looking to buy a significant number of addresses, it said. The lack of single big blocks would  probably drive prices upwards as anyone requiring lots of addresses would have to get them from several sources, it said.
In May, the UK's Department for Work and Pensions started selling off some IPv4 addresses it owned and got about Â£7 for each of the 150,000 it sold.
Arin's announcement came as BT, the UK's biggest ISP, unveiled that it planned to enable its entire network for IPv6 by the end of 2016.


A housing development put on hold for a decade has been called a "blight on the community".

Harron Homes said the scheme at Heol Berwyn, Cefn Mawr, was left unfinished following the 2007 financial crash.
But residents called the delay "unacceptable" and raised concerns over open sewers, rat infestations and anti-social behaviour.
A petition calling for the project to be completed was handed to Parliament on Wednesday.
Wrexham councillor Derek Wright said: "I understand they want to change the design and layout of the site.
"If that is the case, I hope they undergo full consultation with the people living in that area on the design and listen to their views."
Local MP Susan Elan Jones said a campaign by Mr Wright had seen Harron Homes clear overgrown weeds and re-surface the site.
"However, having held a local public meeting, we decided it was time to take the step of presenting a petition in parliament to try and get the developer to do more to address the concerns we have," she said.
Mother-of-five Laura O'Donnell, who lives in the estate's only finished house, said in the summer her doors and windows were "black with flies" from a local sewer plant.
"If I was to buy, I wouldn't buy here.
"They were asking an awful lot of money for the houses. It's not really affordable for families."
A Harron Homes spokesman said it was "common practice" for schemes to be put on hold at the time of the 2007 recession.
The company claimed support from Wrexham council had "not been forthcoming".
The council has been asked to comment.
A statement from Harron Homes said: "Unfortunately, we cannot accept the council's request for the land to be gifted to them as a charitable donation to off-set against our tax liability, although we await further details on this as promised by the council.
"As part of these efforts, we have entered into consultations with Wrexham council in 2014 to 2016 and have made enquiries about selling the land to an appropriate local housing association of the council's recommendation.
"In the meantime, we will continue to endeavour to maintain the site to keep it in a safe condition despite regular vandal damage and fly tipping, which is being reported to the council."


The Canadian Grand Prix will go ahead in June after organisers agreed a deal with the sport's commercial rights holders.

The race was one of three, along with Brazil and Germany, which was subject to confirmation on the provisional 2017 calendar.
Formula 1 bosses wanted the circuit in Montreal to undergo improvements.
But the city's mayor Denis Coderre confirmed on Twitter: "There will be a Grand Prix of Canada in 2017."
Next year's race will celebrate 50 years of Formula 1 in Canada.
"Montreal and Circuit Gilles Villeneuve produce one of the most exciting grands prix of the season," said Francois Dumontier, president of race promoters Octane Racing Group.
"In 2017, everyone will have even more good reasons to be there."
Octane have the rights to promote the race from 2015 to 2024.
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Police are searching for two teenage boys after one of them shone a laser into a woman's eye in Clydebank, leaving her blind in one eye.

The incident happened as the 33-year-old walked under a railway bridge on Dumbarton Road, near the junction with Cable Depot Road, at about 22:00 on Saturday 10 September.
Both boys were described as being white, aged about 14 or 15 and wearing dark-coloured sportswear.
One of them had brown hair in a quiff.
The woman was taken to the Queen Elizabeth University Hospital for treatment and later reported the incident to police.
Det Sgt Kevin Mulvenna, of Police Scotland, said: "This was a completely unprovoked and senseless attack on this woman, which has left her blind in one eye. The youths responsible must be caught as soon as possible.
"To point a laser pen at someone is highly irresponsible. Extensive inquiries are ongoing to trace the two boys, with officers carrying out inquiries in the local area and studying CCTV footage to identify them."
He asked anyone with information to contact police.


Wales striker Simon Church has left MK Dons to join Dutch club Roda JC for an unspecified fee.

The 27-year-old had a year left on his Dons deal, but has signed a one-year contract with his new club with an option for another 12 months.
Having been on loan at Aberdeen in 2015-16, the Amersham-born player has now parted company with the Dons, who were relegated to League One last term.
Church joined MK Dons in June 2015 after leaving Charlton.
Find all the latest football transfers on our dedicated page.


A man has been held in prison for seven months after failing to decrypt two hard drives that investigators suspect contain indecent images of children.

A court order says the man will remain jailed "until such time that he fully complies" with an order to unlock the password-protected devices.
The US man, who has not been charged with possessing illegal images, is appealing against his detention.
"He has never in his life been charged with a crime," wrote his lawyer.
The case highlights the US government's ongoing battle with data encryption.
The man, a former police sergeant, cannot be named for legal reasons.
In March 2015, investigators in Delaware County, Pennsylvania, seized computer equipment from the man's home, including two password-protected hard drives.
The investigators had been monitoring the online network Freenet and decided to search the man's home, according to news site Ars Technica.
After a district court ruled the man would not be compelled to decrypt the hard drives, investigators took the case to a federal court that issued a warrant to search the devices.
The government then invoked a 1789 law called the All Writs Act, which gives federal courts the power to force people to co-operate in a criminal investigation.
The same law was controversially invoked by the FBI when it tried to compel Apple to decrypt the iPhone used by California gunman Syed Rizwan Farook. Apple said that the demand was a "stretch" of the law.
According to the jailed man's appeal, he appeared at the district attorney's office to enter passcodes for the hard drives - but they failed to work.
He was then ordered to explain his failure to enter the correct passcodes, but after declining to testify was held in contempt of court and jailed.
"His confinement stems from an assertion of his Fifth Amendment privilege against self-incrimination," wrote the man's lawyer, Keith Donoghue.
The US Constitution's Fifth Amendment is designed to protect people from being forced to testify and potentially incriminating themselves and states: "No person shall be... compelled in any criminal case to be a witness against himself."
The Electronic Frontier Foundation, which campaigns for digital rights, said: "Compelled decryption is inherently testimonial because it compels a suspect to use the contents of their mind to translate unintelligible evidence into a form that can be used against them."
The man's appeal also contends that he should not be forced to decrypt the hard drives because the investigators do not know for certain whether indecent images are stored on them.
The EFF agreed: "Complying with the order would communicate facts that are not foregone conclusions already known to the government".
The appeal, which argued the man should be released from prison while it was considered, was filed on 26 April.


A man has appeared in court accused of raping a woman in St Andrews and sexually assaulting another in the town the following day.

Pasquale Galianni, 30, made no plea at Cupar Sheriff Court and was remanded in custody.
He is alleged to have raped a 27-year-old woman in the Fife town's Doubledykes Road on Wednesday 9 April.
He is also accused of sexually assaulting an 18-year-old at the David Russell Apartments the following day.
The case was continued for further examination.


The oil and gas industry is set for a year of mergers and takeovers as a result of the plummeting oil price, a business consultancy has predicted.

PwC said 2015 may bring the first hostile takeover in the sector in living memory.
It warned of "uncertain times" for the estimated 440,000 people employed in the UK's oil and gas industry.
The oil price has fallen from $115 a barrel in the middle of the year to about $60.
Drew Stevenson, PwC's UK energy deals leader, said: "Oil prices remaining at the current level for a sustained period will light the touch-paper for mergers and acquisitions in 2015.
"As the UK industry positions itself for a more uncertain future, we expect to see deal activity levels pick up throughout the year ahead."
PwC said the industry would be "increasingly cash-constrained" with new debt coming at a cost, and existing debt coming under increased scrutiny.


Ireland's hopes of retaining the Intercontinental Cup were dealt a blow as they were held to a draw by the Netherlands at Malahide.

William Porterfield completed his 16th Ireland century as they added 73 runs before declaring on 240-7 to leave the Dutch needing an unlikely 343 to win.
Stephan Myburgh's 85 steadied the Dutch after Wesley Barresi suffered a duck.
A 60-run partnership by Ben Cooper and Peter Borren left the Dutch on 186-4 as played was halted at 18:30 BST.
After a number of rain delays in the contest, Ireland utilised their right to play for another hour after the scheduled finish time of 18:00 BST before captains Porterfield and Borren shook hands.
Resuming on their overnight 167-4, Porterfield batted for just 11 more overs before declaring for the second time in the game.
By then Porterfield had shown all his class in an excellent 108 while Kevin O'Brien had chipped in with a quick-fire 50.
The visitors' unlikely run chase took an early blow as Tim Murtagh trapped Barresi lbw without scoring.
However, a second-wicket partnership of 107 between Myburgh and Dan ter Braak helped ensure that they would leave Dublin with a share of the spoils.
Simi Singh was best with the ball for Ireland in the second innings with 2-19 as unbeaten knocks of 37 and 25 from Cooper and Peter Borren ensured the dogged Dutch earned a deserved draw.
The result moved Ireland to the top of the Intercontinental Cup table but they will need to beat Scotland in November and hope that Afghanistan slip up in the one of the two remaining games to retain the title.


Government papers from 1987 have been released 28 years after publication as part of phased changes that are being introduced.

It is part of plans to release government papers after 20 years instead of the current 30 year rule.
The 1987 papers show the then Secretary of State Tom King recommended the closure of Harland and Wolff shipyard.
The details were contained in some of the almost 700 files released on Friday by the Public Records Office (PRONI).
In 1987, the Belfast shipyard was in major financial difficulties.
Eventually the yard was saved by a management and employee buy-out.
The 1987 papers also reveal that the Irish government was keen to see the demolition of the Divis Flats complex in west Belfast.
They believed it would reduce support for the IRA.
And some papers detail the security measures around the trial of several IRA members who had escaped from the Maze Prison a few years earlier.
1987 also saw the continuation of the unionist campaign of civil disobedience against the 1985 Anglo-Irish Agreement.
The year began with the launch, by Ian Paisley and Jim Molyneaux, of a petition to Queen Elizabeth calling for a referendum on the agreement.
On 14 February, the document, containing 400,000 signatures, was handed in at Buckingham Palace.
It was duly referred to the NI Secretary of State, Tom King, who rejected its central demand.
June saw the return of the Conservative government under Margaret Thatcher in the UK general election.
The chief beneficiary in Northern Ireland was the SDLP, which increased its vote at the expense of Sinn FÃ©in and succeeded in unseating UUP MP Enoch Powell in South Down.
More than 100 files from 1987 remain closed, the majority of which are individual prisoner files.
Graham Jackson from the Public Record Office of Northern Ireland said: "Annually since 1976, official records held by PRONI which were 30 years old have been reviewed with a view to making them publicly available ("the 30 year rule").
"In September 2011, the NI Assembly accepted a Legislative Consent Motion to reduce the time limit for release from 30 years to 20 years ("the 20 year Rule").
"The 20 year rule is being phased in over 10 years, with two years worth of records being reviewed and released each year.
"This is the third year of the phasing-in period; which see the records of the NI departments and the NIO with terminal dates of 1987 brought forward for review and release in August 2015 and the records with terminal dates of 1988 brought forward in December 2015."


A car thief who killed a policeman by running him over in a stolen pick-up truck during a chase "thoroughly deserved" his 20-year sentence, a court has ruled.

Clayton Williams, 20, ploughed into PC Dave Phillips, 34, during a high-speed police pursuit in October 2015.
The officer was attempting to deploy a stinger device when Williams hit him.
The Court of Appeal upheld the length of the sentence given to Williams, who was convicted of manslaughter in 2016.
Dismissing Williams' appeal, judge Sir Brian Leveson said: "In our judgement he (Williams) cannot have any complaint with the sentence passed upon him. It was thoroughly deserved.
"Severe punishment will be imposed on all those who kill or injure police officers."
Merseyside officer PC Phillips was struck in Wallasey after responding to reports of a burglary in Woodchurch Road, Birkenhead, with a colleague.
The married father-of-two died shortly after arriving at hospital.
Adam Davis QC argued Williams had been sentenced to "very many years, far in excess of what was appropriate on the facts of the case".
"Is this so grave a crime that merited a sentence of 20 years for a 19 year old?" he said.
Rejecting the argument, Sir Brian agreed with the trial judge that this had been a "very grave offence of manslaughter".
He said Williams' age was taken into account when he was sentenced.
Williams was 19 when he was cleared of murder but found guilty of manslaughter at Manchester Crown Court.
He ordered to serve 20 years, initially in a young offenders institution, and was also banned from driving for life.
Williams was found not guilty of attempting to wound another police officer.


The former billionaire businessman Sean Quinn is to be discharged from bankruptcy on Friday.

Dublin's High Court heard he will pay 10,000 euros (Â£7,800) a year for the next two years to the court official overseeing his bankruptcy, from any income he receives in the future.
He was once the richest man in Ireland and the 12th richest in the UK before his business empire collapsed in 2010.
Mr Quinn was declared bankrupt in January 2012.
In December, it was revealed that Mr Quinn was returning to manufacturing after one of his former businesses was bought by a group of his supporters.
The new firm is to be renamed Quinn Industrial Holdings Ltd and will be led by former Quinn Group employees who once held senior roles under Mr Quinn.
Mr Quinn's level of remuneration has not yet been decided.
Mr Quinn was a self-made man who started a multi-billion pound business empire by selling gravel quarried from his family's farm in Derrylin.
The Quinn Group gradually expanded, manufacturing and supplying other building products, glass and plastics, and eventually moved into insurance, hotels and property development.
Mr Quinn also invested in Anglo Irish Bank, one of the leading lights of the Celtic Tiger economy, and built up a 25% stake in the bank.
The investment went disastrously wrong in 2008, and the bank, which was facing collapse, was bailed out by taxpayers.
Anglo Irish bank was nationalised in 2009 and its affairs were taken over by the Irish Banking Resolution Corporation (IBRC).
For the last few years, the Quinn family has been involved in a high-profile legal battle with IBRC.
It claimed the Quinn family owes the former bank more than two billion euros (Â£1.56bn) and tried to recover the money from their assets.
Lawyers for the IBRC alleged that members of the Quinn family tried to strip assets from their firms, putting property worth millions of pounds beyond the reach of the former bank, in defiance of a court order.
In 2012, the High Court in Dublin ruled that Sean Quinn, his son Sean Quinn Jr and his nephew, Peter Darragh Quinn, were in contempt of that court order.
Sean Quinn and his son were both jailed for contempt and served short sentences in Dublin's Mountjoy prison.
Peter Darragh Quinn did not attend court for the sentencing and a warrant for his arrest was issued.
He left the jurisdiction and returned to Northern Ireland, where the arrest warrant could not be enforced.


A man in his 50s died in an explosion at a construction site in north London, police have said.

Emergency services, including the London air ambulance, were called to an "industrial incident" in Swain's Lane, Highgate, just after 14:00 GMT.
The site was once a petrol station and part of the demolition work required removing underground tanks.
The explosion "sounded like a bomb", locals said. Roads have reopened but police remain on scene.
The 1930s terrace, on the site of a former shopping parade, is due to be replaced by eight new shops and 12 houses.
Owners Noble House were aware of safety concerns but had claimed to residents there were "no indications of hazardous materials".
A report had also "indicated ways to deal safely with the underground tanks" developers said.
Highgate councillor and Green London Assembly Member Sian Berry told the BBC that builders had been due to remove petrol tanks from the site this week.
She said: "It's absolutely shocking. I was there last Friday and saw a big tank that used to store petrol. The first stage of construction was taking these tanks away."
Local resident Kim Gray said the explosion "sounded like car bomb" and shook local buildings.
Ozan Yelken, 27, a supervisor at neighbouring Bistro Laz restaurant, said: "I heard a very big bang, like a wall collapsing.
"I ran outside and it was very quiet for a few seconds then people started running into the construction site."
Mr Yelken said he saw workers removing a petrol tank earlier today.
The Health and Safety Executive said it was "aware of an incident that took place today at Swains Lane, Camden and is in communication with the emergency services".


BBC shows Happy Valley, The Missing and Marvellous have won multiple awards at the Monte Carlo television awards.

Happy Valley won best European drama series and Sarah Lancashire was awarded outstanding actress in a drama series.
The Missing won best mini series and outstanding actress for Frances O'Connor.
Marvellous picked up three awards - best television film and outstanding actor and actress for Toby Jones and Gemma Jones.
Crime drama Happy Valley was a ratings and critical hit when it was first screened in 2014.
It followed police sergeant Catherine Cawood, (played by Lancashire) who stumbles on a kidnap plot as she pursues a man she holds responsible for her daughter's suicide.
Written by Sally Wainwright, it won a TV Bafta for best drama and a new series is due to air this year.
Also set to return is fellow crime drama The Missing.
The drama starred James Nesbitt alongside Frances O'Connor, as parents of a boy who goes missing on holiday in France.
TV film Marvellous has been nominated for numerous awards. In the true story, Toby Jones played Neil Baldwin, a man with learning difficulties who does not let them hold him back from leading an extraordinary life.
Jones won best actor at the Broadcasting Press Guild awards for the role.
Also at the Monte Carlo Television festival, the Amade prize was given to ITN for their report on The Desperate Struggle To Save Iraq's Yazidis.


The US Navy has launched a squadron combining unmanned drones as well as manned aircraft, amid a national debate over the role of drones in warfare.

The Helicopter Maritime Strike Squadron 35, called the Magicians, is the first such unit.
It will have eight manned helicopters and 10 Fire Scout MQ-8B unmanned helicopters for tracking targets.
The Obama administration has expanded use of drones in counter-terrorism operations overseas.
At an inauguration ceremony at the Naval Air Station North Island at Coronado, California, Vice Adm David Buss said the new squadron "points toward the future for our naval aviation forces".
"The actions today represent a clear line dividing what naval aviation once was and what it will be," he said.
Over the summer the squadron's first task will be to undergo training and develop operational guidelines.
Squadron Cdr Christopher Hewlett, who will oversee about 140 sailors, said the drones would eventually be armed.
The Fire Scout drones are expected to deploy off a new line of ships designed to operate in shallow coastal waters, called littoral combat ships, which are to be launched in the Pacific next year.
The drones can be controlled by two "pilots" up to 110 miles (177km) away and fly for at least eight hours.
The high-speed littoral combat ships can operate at shallow depths and access waters that few other ships can, Vice Adm Buss said.
The unmanned aircraft, which can operate autonomously, can provide real-time information to servicemen by travelling over dangerous areas, officials said.
One could, for example, hover above a target and maintain contact while helicopter crews returned to re-arm or gather more troops, they said.
In spring 2012 Fire Scout drones were grounded after two unrelated crashes in the same week, the Navy Times reported.
The US has acknowledged its use of drones for targeted killings of militants, and drones have reportedly been used in Pakistan and Yemen. In February it was revealed that the CIA had been operating a drone in Saudi Arabia.
US officials insist strikes by the unmanned aircraft rarely claim civilian casualties and are an effective weapon against the Taliban and al-Qaeda.


A shopkeeper is having to chase a thieving seagull away as it repeatedly tries to help itself to snacks.

Zaman Iqbal has filmed the bird's antics at his 24-hour newsagents in Aberdeen's Crown Street.
In 2007, an Aberdeen seagull found fame when it turned shoplifter by wandering into a shop and helping itself to crisps.
The bird - nicknamed Sam - would walk into the newsagents when the door was open and make off with cheese Doritos.


Jordan has executed 11 men convicted of murder, ending an eight-year moratorium on the death penalty in the country.

The interior ministry said the men, convicted in different cases, had been hanged at dawn on Sunday.
Jordanian authorities gave no reason for the lifting of the 2006 moratorium on capital punishment.
Interior Minister Hussein Majali recently said the public blamed a rise in crime on the non-application of the death penalty, AFP news agency reports.
A number of Middle East countries have retained capital punishment, including Jordan's neighbour Saudi Arabia which has carried out dozens of public executions this year.


Malaysia's transport minister has said there is a "high possibility" that debris found in Mozambique came from a Boeing 777, the same model as missing Malaysia Airlines flight MH370.

Australia said the location was consistent with models of where ocean drifts could carry debris.
The 1m-long (3.3ft) piece of metal was found on a sandbank at the weekend.
MH370 disappeared in March 2014 while en route from Kuala Lumpur to Beijing, carrying 239 passengers.
Despite an extensive deep water search, led by Australia, the plane and all its passengers remain missing.
Malaysia's transport minister Liow Tiong Lai said on Twitter that based on early reports, there was a "high possibility debris found in Mozambique belongs to a B777".
But he said: "I urge everyone to avoid undue speculation as we are not able to conclude that the debris belongs to MH370 at this time."
He said Malaysian aviation teams were working with their Australian counterparts to retrieve the debris.
Australia's minister for infrastructure and transport Darren Chester said in a statement that the location of the piece was consistent with drift patterns of debris and "reaffirms the search area for MH370 in the southern Indian Ocean".
He said the piece would be transferred to Australia where it would be examined.
Missing Malaysia plane MH370: What we know
MH370 search: Does debris solve the mystery?
MH370: Missing Malaysian's wife seeks $7.6m in damages
If confirmed, the object found in Mozambique would be the second piece of known debris from the aircraft to be found. Last year authorities found a piece of the plane's wing on the shore of Reunion island in the Indian Ocean.
According to reports, the new object was discovered on a sandbank off the coast of Mozambique. NBC News said it was found by an American man who had been tracking the investigation into the missing flight.
Mozambican authorities have no information on the sighting of the object, interior ministry spokesman Inacio Dina told Reuters.
The US National Transportation Safety Board and aircraft manufacturer Boeing declined to comment.
Based on satellite communications data, MH370 is thought to have crashed in the Indian Ocean.


Scottish Borders Council is being advised to back proposals to create a new European funding administrative region for southern Scotland.

At the moment Scotland is divided into four areas but the Scottish government is consulting on creating a fifth.
It would include Dumfries and Galloway, the Borders, South Lanarkshire and East, South and North Ayrshire.
A report to councillors in the Borders has advised them to support the plan as it could bring extra funding.
European statisticians currently divide Scotland into four large regions - Eastern, North Eastern and South Western Scotland plus Highlands and Islands - to inform regional policy development and determine regional funding.
The Scottish government has now proposed creating the fifth region.
Scottish Borders Council has been told the move has the potential to see "increased European funding being made available to the Scottish Borders in the longer term".
It has also been advised of the "reputational risk" if it does not lobby as effectively as possible for additional European funding.
The report concluded that it was important for the proposal to be reinforced "in order for the potential benefits of these changes to be realised".


A man is in hospital after being found covered in blood in Greenock Cemetery in Inverclyde.

Police were called to the cemetery at about 20:00 on Thursday after reports of a man lying injured.
He was taken to Inverclyde Royal Hospital, where his condition is unknown.
A spokesman for Police Scotland said the cemetery had been closed off to allow an investigation of the area to take place.


British boxer Joe Cordina lost a split decision to Hurshid Tojibaev of Uzbekistan in the lightweight division at the Olympics.

Welshman Cordina, 24, showed good movement in the contest, but failed to land combination shots on his opponent.
The last-16 contest was level after the first round but Tojibaev, 26, was a comfortable winner in the next two.
"I can't complain, the better man won on the day. I just couldn't get going in the last round," said Cordina.
"He's the hardest hitter I've been in the ring with, but I've got a lot to take from this experience."
He follows fellow Britons Lawrence Okolie, Anthony Fowler and Galal Yafai in being knocked out of the Games.
European champion Cordina faced an experienced opponent in Tojibaev, who is competing at his second Olympics having appeared in Beijing eight years ago.
Despite being docked a point in the second round for punching below the waist, Tojibaev was given scores of 29-27 by the Colombian and Chinese judges to advance to the quarter-finals.
Cordina used classy footwork and counterpunching to beat bustling Filipino Charly Suarez in the first round.
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The second wave of tickets for BBC Sports Personality of the Year 2015 in Belfast have sold out in only 15 minutes.

A limited number of tickets were made available after the initial round of tickets sold out in 35 minutes in October - the quickest sell-out since the show went on the road in 2006.
The shortlist for this year's award will be unveiled on The One Show on Monday 30 November from 18:50 GMT.
Taking place in Northern Ireland for the first time, the main award show will be broadcast live from the SSE Arena on Sunday 20 December.
Gary Lineker, Clare Balding and Gabby Logan will again present the show, which will be live on BBC One, the BBC Sport website and BBC Radio 5 live.
The Sports Personality of the Year award will be determined by a public vote on the night with a list of contenders selected by the following panel:
Media playback is not supported on this device
Formula 1 world champion Lewis Hamilton won last year's Sports Personality of the Year award in Glasgow, taking 34% of the 620,932 votes cast, with golfer Rory McIlroy second and athlete Jo Pavey third.
Real Madrid footballer Cristiano Ronaldo was named Overseas Personality of the Year, and the England women's rugby union team took the Team of the Year prize.
European Ryder Cup captain Paul McGinley won Coach of the Year, six-time Olympic gold medallist Sir Chris Hoy was honoured with a lifetime achievement award, and Young Sports Personality of the Year was given to gymnast Claudia Fragapane, who won four gold medals at the 2014 Commonwealth Games.
Sports Personality Roll of Honour: Every winner from 1954-2014