Disruptive Trends in Gaming, Metaverse, Audio, Digital Fitness and Sports Betting Reshape the Years Ahead
SAN FRANCISCO and NEW YORK, October 26, 2022 /PRNewswire/ — Enable Consulting, the leading management consulting firm for technology, internet, media, entertainment and sports companies, today released its annual Activate Technology and Media Outlook, a comprehensive report on the state of internet, technology, media and entertainment industries. The report, presented at the Wall Street Journal Tech Live Conference by the CEO of Activate Consulting Michael J. Wolfis available on the WSJ website and app as well as on www.activate.com/#outlook.
In this annual report, Activate Consulting focuses on topics such as the attention clock and consumer spending, the metaverse, gaming, super users, sports and sports betting, digital fitness and more. . The report is based on groundbreaking proprietary research.
The results prove the following industry-wide trends, including:
- Global Internet and media companies will appreciate more … than 400 billion dollars growth dollars – of $2.3T to $2.7T between 2022 and 2026. Half of this growth will come from global ad spend
- Digital video consumption will be stable until 2026. In the United States, YouTube has 229M viewers, Amazon Prime has 162M and Instagram comes third with 126M the viewers
- Netflix and Disney+ will grow largely through international expansion with Disney+ plans to have 264M subscribers by 2026 vs. Netflix rising to 258M worldwide
- The three most streamed films – Encanto, Turning Red and Sing 2 – generated 26% of all streaming time for films in 2022. For series, originals outperform acquired series by 60% to 40% respectively. Stranger Things, Ozark and NCIS were the top three shows.
- National advertising revenue for major streaming services will more than double for $16 billion between 2022 and 2026, Netflix is expected to grow at a CAGR of 39% and Disney+ 25% CAGR
- Social video consumption will increase from: 47min in 2022 to almost an hour (: 59min) in 2026. TikTok users will increase from 1.5B in the world in 2022 for 2B in 2026. YouTube will grow from 2.1B in 2022 at 2.4B in 2026. Instagram will go from 1.3B at 1.5B in this period of time.
- Pay TV continues to decline sharply in the United States – from 62% household penetration in 2020 to 53% in 2022 and 45% in 2026
- Music: Significant growth in the global music industry will reach $94 billion revenue by 2026, driven almost entirely by digital audio. It is from $78.7 billion in 2021. 61% of music listeners use YouTube Music compared to 35% for Spotify and Amazon Music, which are now neck and neck. TikTok users are huge drivers of music trends and consumption
- The global video game market should reach close to $220 billion by 2026, with more $50 billion generated in the United States There are 148M active players in the United States today.
- Meta, Microsoft, Nintendo, Sony, Tencent and Valve have taken a comprehensive approach to building capabilities in the gaming space. More gaming mergers and acquisitions are expected.
- The global esports audience surpassed half a billion viewers and will continue to grow to reach 722M viewers by 2026
- The NFT hype is over, with less than a third of American adults aware of what an NFT is. Sales peaked in August 2021 at $6.2 billion and were just $1.1 billion a year later in August 2022. After the hype, a new set of more tangible use cases rooted in established technology and media behaviors (eg, commerce, social) should emerge. Going forward, these use cases will focus on problems that NFTs have a strong case for solving, such as building communities, rewarding loyal brand users, and legally automating content, real estate and digital collectibles. The user rationale for buying NFTs has also shifted away from investment use cases and towards viewing and collecting
- Global e-commerce will reach $9.4T in 2026, continuing to grow faster and add more absolute dollars than post-pandemic brick-and-mortar retail. China accounts for more than 50% of total e-commerce sales worldwide compared to 15% of sales in the United States
- Live eCommerce sales will increase $5 billion in 2020 for $55 billion in 2026
- sports betting continues to rise in the United States, with total bets nearly doubling year-over-year to reach $47 billion in the first half of 2022. In Jan 2022the peak of monthly bets reached $9.8 billion in the United States only. The total amount of sports bets wagered will reach $210 billion by 2026, sports betting will become legal in a growing number of states
- Health and fitness technology and services will achieve a combined market value of $30 billion by 2026 and the next wave of consumer growth will come from diet, meditation and sleep services/apps
“This year, the power shift between winners and losers has deepened across a range of industries – from gaming and social media to global e-commerce consumption,” said Michael J. Wolf, CEO and co-founder of Activate Consulting. “The predictions shared today will have a profound impact on the technology and media industries as they approach 2023 and beyond.”
About Active Consulting
Activate Consulting (Activate) is a next-generation management consulting firm focused on technology and media companies. Michael J. Wolf, the former president and COO of MTV Networks, founded the company in 2010. Activate works with CEOs and executive teams to define strategies, drive innovation and improve revenue performance in areas such as go-to-market strategy, pricing, consumer knowledge. , and marketing. The company is known for publishing its annual Activate Technology & Media Outlook report on the state of the technology, media and entertainment industries and is based in New York and San Francisco.
For more information, please visit www.activate.com.