A management consulting firm specializing in technology and media companies has released a report containing valuable information about multiple industries.
On Wednesday, Activate Consulting released its report entitled: Activate Technology & Media Outlook 2023. It was initially delivered during the Wall Street Journal Tech Live Conference which started on the 24th and concluded today.
The annual report is based on so-called groundbreaking proprietary research and covers topics such as internet and media businesses, major streaming services, the music industry, NFT’s, the global ecommerce market, health/wellness products and sleep services/applications.
The noteworthy findings contained in the report are as follows:
According to Activate, global internet and media businesses are expected to grow by over US$400 billion, ascending from US$2.3 trillion to US$2.7 trillion within the next four years. The firm claims half of that growth will be attributed to global advertising expenditure.
Netflix (NASDAQ: NFLX) and Disney+ (NYSE: DIS) will grow substantially due to global expansion. Disney+ is expected to have 264 million subscribers by 2026 and Netflix is anticipated to have 258 million. Activate says domestic advertising revenues for those major streaming services will increase by over 100 per cent to US$16 billion between 2022-2026. Netflix has been forecasted to expand at compound annual growth rate of 39 per cent and Disney+ will have a 25 per cent CAGR.
The report says the global music industry will experience significant growth as well and ascend from US$78.7 billion in revenue last year to US$94 billion by 2026. That increase in funds will be primarily driven by digital audio with 61 per cent of listeners using YouTube Music and 35 per cent tuning into Spotify and Amazon Music, which are “neck and neck.”
The international market for video games is expected to ascend to almost US$220 billion by 2026, largely attributed to the 148 million gamers in the United States who will generate more than US$50 billion alone.
The hype for NFT’s has come to an end, according to Activate and less than 33 per cent of adults in the U.S. even know what an NFT is. Sales for the tokens reached an all-time high in August last year at US$6.2 billion and plummeted afterwards to only US$1.1 billion in sales this August. The firm also says that buyers are now more concerned with displaying and collecting the tokens than they are with purchasing them as an investment.
The global ecommerce market is expected to reach US$9.4 trillion by 2026 with China accounting for over 50 per cent of sales globally and the U.S. having only a 15 per cent share. Additionally, livestream ecommerce sales are expected to ascend rapidly from a total of US$5 billion accounted for back in 2020 to US$55 billion by 2026.
We published the 2023 Activate Outlook for Technology & Media. Founder and CEO @mjw delivers the annual forecast for industry trends at the @WSJ Live Conference. https://t.co/0wecDl70iK #ActivateOutlook2023 pic.twitter.com/xEGnS8gRbC
— Activate Consulting (@activateinc) October 26, 2022
Lastly, the market for health and wellness tech and services is expected to be valued at US$30 billion by 2026 with growth derived from diet and meditation products and sleep services/applications.
“This year, the power shift between winners and losers became more pronounced across a range of sectors – from gaming and social media to global consumption of ecommerce,” said Michael J. Wolf, CEO and co-founder of Activate Consulting.
“The forecasts shared today will profoundly impact technology and media industries as we approach 2023 and beyond.”