1:08pm PT by Carolyn Giardina
Spending on Streaming Services and Software Could Reach $112 Billion in 2021
Total spending on streaming services and software is projected to reach a record $112 billion in 2021, an 11 percent growth over 2020, according to Consumer Technology Association projections announced on Monday, as its virtual CES Show began. This follows 31 percent growth in 2020 over 2019, reports CTA.
The CTA research suggests that overall retail sales revenue for the technology industry will climb to $461 billion in the U.S. in 2021 – a 4.3 percent increase year-over-year--with streaming services, 5G connectivity and digital health devices (including health monitoring and sanitizing technology) as leading drivers due to Americans staying home during the pandemic.
Noting that Disney+ hit 50 million subscribers in five months, CTA execs forecast that 2021 spending on streaming subscriptions could reach $41 billion. Additionally music, audio book and podcast listening could top $10 billion; while video game software and services could exceed $47 billion. The newest game consoles from Microsoft and Sony could push console shipments to 18 million units, according to CTA projections.
In the television product category, CTA cited a trend toward households upgrading TVs during 2020. In 2021, its research suggests a continued demand though TV shipments are expected to drop 8 percent to 43 million units in 2021. Growth areas for the TV category in 2021 may include large displays over 70-inches.
Underscoring attention on 5G, new 5G-supported smartphones are expected to generate $39 billion, the association reported.