Smartphone batteries: better but no breakthrough
Deloitte predicts that the rechargeable, lithium ion (Li-Ion) battery technology used in all smartphones will improve only modestly in 2015.
The connectivity chasms deepen: the growing gap in broadband speeds
Deloitte predicts that in developed countries, the average broadband speeds obtained by the top decile will be 5x or greater than the lowest decile. Read the additional insights in this prediction.
Contactless mobile payments (finally) gain momentum
Deloitte predicts that by end-2015, five percent of the base of 600-650 million near-field communication (NFC) equipped phones will be used at least once a month to make contactless in-store payments at retail outlets. Read more of this prediction.
Drones: high-profile and niche
Deloitte predicts that in 2015, the active base of non-military drones costing $200 or more should exceed one million units for the first time. We expect sales of non-military drones to be about 300,000 units in 2015, with the majority being bought by consumers or prosumers. Read more here.
The Internet of Things really is things, not people
Deloitte predicts that in 2015 one billion wireless Internet of Things (IoT) devices will be shipped, up 60% from 2014, leading to an installed base of 2.8 billion devices. Read more about this prediction.
Short form video: a future, but not the future, of television
Deloitte predicts that in 2015 total time spent watching short-form (under 20 minutes’ duration) video online will represent under three percent of all video watched on all screens. Learn more about this prediction here.
One billion smartphone upgrades
Deloitte predicts that one billion smartphones will be purchased as upgrades for the first time in 2015, generating over $300 billion in sales. We expect smartphone upgrade volumes to continue increasing through 2018, and possibly beyond. Read more of this prediction.
The 'generation that won’t spend' is spending a lot on media content
TMT Predictions 2015
Deloitte predicts that North American millennials will spend over $62 billion on media content in 2015.
Deloitte predicts that North American millennials will spend over $62 billion on media content in 2015. This is greater than the total spend on Internet advertising in the US and Canada , and as such represents a significant contribution to the media sector from the generation of 18-34 year-olds often accused of defaulting to unpaid sources of content. There are 83 million millennials in the US and Canada, and $62 billion of spending on media content equates to $750 each.
These numbers may surprise given other trends and perceptions: haven’t millennials stopped buying CDs, subscribing to newspapers, or paying for cable TV? So how can 18-34 year-olds in these two countries spend an average $750 on media in 2015?
The reality is that millennials are spending less on traditional media than they did in the past, and less than older generations, but they are still spending.
Cumulative media spend of $62 billion for this age group in the US and Canada is a significant amount, but this is less than five percent of their total expected spending of $1.45 trillion. It may seem that 18-34 year-olds are allocating less of their spending power to content than people of similar ages did in the past. However spending less on content is surprisingly expensive: consuming news, video and music for free requires expensive hardware and high-speed wired and wireless internet access. The average millennial owns one or more new smartphones and has a big monthly data plan. Streaming video over a wireline connection requires a fast service (at least 5 Mbit/s to stream high definition video and up to 25 Mbit/s for ultra-high quality 4K video) with either a big cap or unlimited consumption. Millennials who replace their PC and tablet every four years and their games console every five would spend about $3,000 per year on technology hardware and connectivity.
Millennials will likely continue to spend heavily on tech hardware and telecom services, but it may come at the expense of media and content spending. They will still spend on content, but may be choosier and more-price sensitive than young audiences in the past.
Oddly enough, the fact that millennials who won’t spend on traditional media are willing to spend on other kinds of content is not bad news for the traditional media industry. If they weren’t willing to spend at all, then there would be no hope. But the experience of the book, computer gaming, OTT providers, cinema and music industries establishes that millennials will open their wallets for certain types of media.
The ‘generation that won’t spend’ is spending a lot on media content
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