Deloitte has released its global predictions for the tech, gaming, and entertainment markets for 2024. The report covers a wide range of topics, including streaming, generative AI, sustainability efforts, monetization strategies, women’s sports, and the gaming industry. Let’s dive into some of the key insights:
Streaming Services Redefine Pricing Models
Deloitte predicts that streaming video services will adapt their pricing models to offer more options to consumers. They may charge higher fees for premium content, introduce longer subscription options to combat user churn, and provide more pricing tiers for bargain hunters. The report also highlights the potential of generative AI to reshape multiple industries, but acknowledges that some enterprise customers may be hesitant to pay additional fees for generative AI features.
“Generative AI is poised for a breakthrough in 2024, as it begins to follow through on its promise of improving productivity, creativity, and enhancing the way enterprises engage with their ecosystems.”
– Paul Silverglate, Vice Chair of Deloitte and Senior U.S. Technology Sector Leader
In the coming years, enterprise software companies are expected to integrate generative AI into their offerings, with prices ranging from free to $50 per month. This move is predicted to result in a significant revenue uplift of $10 billion by the end of 2024.
Sustainability Efforts in Technology and Telecommunications
The report highlights the sustainability efforts of telecom and semiconductor companies. Telecom companies are transitioning from copper to energy-efficient fiber optics, phasing out 3G networks, and adopting lower power 5G infrastructures. As a result, Deloitte forecasts a 2% reduction in the telecom sector’s carbon footprint in 2024. In the semiconductor industry, despite increased energy and water usage due to growing sales, new eco-efficient manufacturing facilities and technologies are expected to decrease resource intensity year-over-year.
“Looking into 2024, we’re seeing a clear trend in practical innovation meeting market demand. Generative AI continues to become a critical tool in our tech arsenal. Meanwhile, sustainability efforts in the telecom and semiconductor spaces are making tangible strides in reducing environmental impacts.”
– Kevin Westcott, Vice Chair at Deloitte for U.S. TMT and Global Telecommunications, Media, and Entertainment
Women’s Sports, Gaming, and Media Innovation
The year 2024 is expected to be a groundbreaking year for women’s elite sports, with total forecast revenues reaching $1.28 billion, three times higher than in 2021. This growth is driven by commercial revenue, broadcast income, and game day sources. The media and entertainment sector faces the challenge of balancing growth with profitability, especially with declining pay TV subscriptions and ad dollars. However, streaming video services are evolving their business models to offer viewers more choices.
“In 2024, media and entertainment companies will focus on bringing consumers more of what they want. Gaming platforms are giving users the tools to create their own games, which could lead to a boom in quality content, but could be a threat to their own business longer term. It’s a crucial time as the industry finds new and profitable ways to keep audiences engaged.”
– Jana Arbanas, Vice Chair of Deloitte and U.S. Telecom, Media, and Entertainment Sector Leader
The gaming industry is also experiencing significant growth, with high-performing gaming IPs expanding across media formats and reaching broader audiences. User-generated content in gaming, supported by generative AI, has the potential to disrupt the industry. Additionally, the audio entertainment market is predicted to surpass $75 billion in 2024, driven by formats like podcasts, streaming music, radio, and audiobooks.
