Deloitte’s technology, media and telecommunications (TMT) practice has announced its predictions for the sector for 2023. These include:
Advertising video on demand
Deloitte predicts that by mid-2023, all major video subscription services will have launched an ad-funded tier alongside ad-free offerings in Europe.
By the end of 2024, half of these providers will also have launched a free ad-supported streaming TV (FAST) service.
Additionally, about two-thirds of consumers will use at least one advertising video on demand service monthly, 5% up on 2022. By 2030, most online video service subscriptions will be partially or wholly ad-funded.
Meanwhile, ad-funded tiers from subscription video on demand (SVOD) platforms will join existing ad-funded streaming services from broadcasters.
Shopping through social media
Deloitte predicts that spending on goods and services via social media will surpass $1trn (£820bn) globally in 2023 – a 25% increase year-on-year from $800bn (£650bn) in 2022 and $655bn (£540bn) in 2021.
This comes as a growing number of platforms are offering e-commerce services, whether via content creators or brands.
Consumers are turning to new forms of online shopping to find the best deals. Research published in 2022 showed that in the UK 53% of Gen Z consumers and 42% of Millennial consumers are influenced by social media personalities when they are making buying decisions.
Smartphones accessibility
Deloitte predicts that 2023 will see the launch of the first 5G smartphones to retail at less than $100.
Although this will make up a small share of smartphone sales in 2023, it marks a move towards more accessible 5G devices for consumers across most markets.
A $99 5G phone would look and feel similar to that of a top-of-the-line model in size and design, but with low-end displays, single-lens cameras, low-power processors and smaller storage capacities. The total sum of these components, plus shipping and assembly, could cost as little as $127.
The manufacturer, which could be a telecoms provider, could then subsidise the retail price of the device with additional revenue streams, such as pre-installed apps and advertisements.
Virtual reality mainstream?
Deloitte predicts the virtual reality market may generate almost $7bn (£6bn) in global revenues in 2023, a 50% increase on 2022’s estimate figure of $4.7bn (£4bn).
Headsets will generate almost all (90%) of next year’s revenue, with around 14 million units, averaging $450 (£370) each, expected to sell across the year.
Deloitte predicts that the number of in-use VR headsets worldwide will reach 22 million in 2023, almost 50% higher than that of mid-2022.
Consolidation of gaming sector
Finally, Deloitte predicts that in 2023, global deal volumes for game company mergers and acquisitions will increase by around 25%, up from 600 in 2021 and an estimated 750 in 2022.
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