Deloitte has unveiled its global forecasts for the tech, gaming, and entertainment sectors in 2024, signaling a transformative year ahead.
Streaming Services: Driven to Tiers
Streaming video platforms are expected to adopt a "driven to tiers" model, offering varied pricing for premium content. This approach aims to reduce user churn through longer subscription options while catering to budget-conscious consumers with multiple pricing tiers.
Generative AI: A Game Changer
Deloitte predicts that generative AI will significantly impact enterprises starting in 2024. The report offers a comprehensive overview of the generative AI landscape, including infrastructure, cloud services, and specialized software tools. Although some enterprises may hesitate to pay extra for generative AI features, it is set to become an essential component of nearly all enterprise software offerings.
By the end of 2024, enterprise software firms are projected to see an increase in revenue of around $10 billion, primarily driven by the integration of generative AI into their products. "Generative AI is on the brink of transforming productivity and creativity within enterprises," explains Paul Silverglate, Deloitte’s Vice Chair and U.S. technology sector leader. High-powered generative AI chips will enhance analysis, enabling companies to gain insights and value from their unique data sets.
Streaming Media Evolution
The media and entertainment (M&E) sector is navigating a critical transition as pay TV subscriptions decline. While many streaming services remain unprofitable, 2024 may bring change. With diverse options for ad-free experiences, live sports, and budget-friendly tiers, companies aim to enhance user choices. Deloitte predicts that the average number of subscription video-on-demand (SVOD) tiers will rise from four to eight by 2024, offering innovative options such as loyalty plans alongside traditional subscriptions.
Sustainability in Tech and Telecommunications
As technology proliferates, sustainability is becoming imperative. Telecom companies are transitioning to energy-efficient fiber optics and adopting lower-power 5G infrastructures, aiming for a 2% reduction in carbon emissions by 2024. In the semiconductor industry, advancements in eco-efficient manufacturing are expected to decrease resource intensity despite rising sales. Additionally, agricultural technology (AgTech) is projected to revolutionize farming practices, addressing food security and environmental challenges.
Kevin Westcott, Vice Chair at Deloitte, highlights the synergy between innovation and market demand, stating, "Generative AI is becoming a critical tool, and sustainability efforts in telecom and semiconductor industries are making significant progress."
Profitability through Advanced Monetization
As tech companies grapple with monetizing advanced technologies like generative AI, the challenge lies in developing pricing models that reflect value while ensuring customer acceptance. The telecom sector is also exploring innovative monetization strategies beyond traditional service offerings, focusing on enhancing connectivity in underserved areas.
Women's Sports and Media Growth in 2024
2024 is poised to be groundbreaking for women's sports, projected to surpass $1 billion in revenue for the first time. This surge, driven by commercial revenue and enhanced opportunities for female athletes, is changing the landscape of women's athletics.
Deloitte predicts that M&E companies will optimize content offerings to meet consumer preferences. "As streaming services pursue profitability, they’re innovating their content delivery strategies,” says Jana Arbanas, Vice Chair at Deloitte. Gaming platforms are empowering users to create content, which may revolutionize industry dynamics.
User-Generated Content and Evolving Entertainment
The convergence of Hollywood and gaming is redefining how franchises engage audiences across platforms. User-generated content is projected to disrupt the gaming landscape, with platforms anticipated to pay nearly $1.5 billion to developers in 2024. Furthermore, the audio entertainment market, encompassing podcasts and streaming music, is expected to exceed $75 billion in 2024, reflecting changing consumer preferences.
Overall, Deloitte’s 2024 Predictions illustrate a year of profound change across the tech, gaming, and entertainment sectors, driven by innovation, sustainability, and user engagement.
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