Music streaming services will generate $8.4 billion in the U.S. alone this year, a 33% spike over 2018 revenue, according to a new Consumer Technology Association report.
In its mid-year report, “U.S. Consumer Technology Sales and Forecasts,” the CTA predicts revenue from the likes of on-demand retailers like Spotify, Apple, Pandora and others will rise with the increased adoption of wireless earbuds and smart speakers.
Consumers will spend $26 billion on music and video subscription services this year, up from $20.4 billion last year and almost twice the total from 2017. Subscription video streaming services are expected to generate $17.7 billion in 2019, up 25% over 2018. That is still dwarfed by video games, which are expected to generate close to $39 billion in revenue in the U.S., according to the CTA. By 2020, games are projected to bring in nearly $42 billion.
The report includes one possible Donald Trump-related note of caution, though.
“Enthusiasm for AI-powered technologies is skyrocketing — more consumers are discovering for themselves how tech innovation can change their daily lives for the better,” said CTA President/CEO Gary Shapiro. “And with 5G delivering the faster connectivity we’ll need for anytime/anywhere streaming, smarter home robotics and more advanced vehicles, consumer excitement will only grow, but unnecessary tariffs — taxes paid by American consumers and businesses — threaten to slow down our nation’s economic momentum.”
Overall, the CTA forecasts that revenue from the U.S. consumer tech industry will rise 2.2% over 2018 to $401 billion. Wireless earbuds, including Apple AirPods and Beats by Dre Powerbeats Pro, are expected to approach $2 billion, a 46% increase, and will see double-digit growth over the next few years.
Spending on software and services (including music, video and gaming services) is projected to reach a new high of $75.6 billion in 2019, a rise of 14%. Smart speaker sales are expected to level off. Multi-year projections do not take into account changes in trade laws, interest rates and federal policy. Any expansion of Trump’s declared tariffs with China would potentially derail CTA’s bullish forecast.
Originally published at https://www.pollstar.com/article/music-streamers-will-pull-in-8b-this-year-thanks-to-wireless-earbuds-smart-speakers-138417