CTA: Consumer Spending on Video/Music Streaming Services to Increase 25% to $26 Billion in 2019

Domestic consumer spending on video and music streaming services is projected to increase 25% to $26 billion in 2019, according to new data from the Consumer Technology Association.

On-demand music services (e.g., Spotify, Pandora or Apple Music) will bring in an expected $7.7 billion in revenue, up 22% as providers race to gain subscribers.

Spearheaded by artificial intelligence (AI) technology being incorporated in myriad consumer electronics devices, consumer spending on smartphones, smart home devices, smart speakers and subscription streaming entertainment will drive the domestic consumer technology industry to a record-breaking $398 billion in retail revenue in 2019 – up 3.9% from 2018, according to the CTA.

“Our latest research shows innovations in AI and faster connectivity are among the key drivers for the industry’s record growth,” CEO Gary Shapiro said in a statement.

Voice-controlled smart speakers, including Amazon Echo and Google Home are projected to sell 36.6 million units (up 5% year-over-year) and earn $3.2 billion in revenue (up 7%). Although adoption is slowing due to rapid voice integration in other devices such as TVs, smart home devices and other audio products, smart speakers remain a category to watch as consumers embrace the benefits of AI in their home.

“The future is bright for many tech products consumers already know and love, as stalwart revenue drivers including smartphones, laptops and televisions continue to innovate,” said Steve Koenig, VP of market research, CTA.

The top three industry revenue drivers continue to be smartphones, laptops and televisions.

After the introduction of pricier, flagship models from major manufacturers, smartphone revenue is expected to reach $80 billion, a 2% increase in 2019. Unit shipments are expected to grow 1% to 170.7 million.

This year marks the launch of the first 5G smartphones on the market. CTA expects 2019 U.S. sales will reach 2.1 million units and cross $1 billion in revenue. By 2022, 76% of all smartphones sold will be 5G-enabled.

In 2019, the U.S. laptop market will sell 51 million units, up 3% over last year, and earn $28.4 billion in revenue (unchanged from 2018). Convertible models and cloud-based laptops remain high-growth areas within computing, as consumers continue to upgrade to the latest operating systems.

Overall, unit sales of total digital displays in 2019 will remain above 42 million units (down 1%) and register $22.6 billion in revenue (up 2%). More than three-quarters of TV shipments will be sets with 40-inch screens or larger.

Future upgrades will be driven by 4K Ultra High-Definition (4K UHD) sets, which now make up more than half of all TV unit sales. 4K UHD will sell 22 million units (14 percent increase) and $16.4 billion in revenue (up 8%). Raising the bar on resolution, inaugural shipments of 8K UHD TVs will reach $545 million in revenue. And budding OLED shipments will reach 1.4 million sets with double digit growth through 2022.

“2019 will mark the introduction of 5G-enabled devices and smartphones and next-gen screen technology such as 8K UHD televisions to the market,” said Koenig. “And constantly-evolving content from streaming services that enhances the experience across ‘the three screens’ – TVs, smartphones, laptops – will help push consumer spending in tech to new levels.”

 

Government Shutdown to Affect Some CES Programming

The federal government shutdown is expected to affect some programming at CES, according to the Consumer Technology Association (CTA).

The show is scheduled to take place Jan. 8-11 in Las Vegas.

“Because of the government shutdown, some of our scheduled government speakers at CES 2019 have alerted us that they must cancel their travel to the show,” said Gary Shapiro, president and CEO of the CTA. “As a result, some of our scheduled CES 2019 programming and speakers will change. We urge attendees who planned to hear U.S. federal government speakers to check the sessions on the website to ensure those individuals are still speaking. Our Speakers Directory can be found here. This page will be updated regularly.”

CES 2019: NBA Commissioner Adam Silver, Twitter CEO Jack Dorsey to Discuss Expanded Partnership

For better or worse, Twitter engages people through social media.

Take the Christmas Day NBA matchup between the Golden State Warriors and Los Angeles Lakers, which was infamously hyped on Twitter after the Warriors featured an illustration of forward Draymond Green attempting to spread holiday cheer.

Twitter followers thought the image made Green look fat. And the snarking followed.

“Did KD draw this?” tweeted one follower in reference to the Warriors’ forward Kevin Durant.

While public putdowns on Twitter are nothing new, the NBA and Twitter hope the platform can enhance the consumer experience – in addition to their bottom lines.

The Consumer Technology Association Dec. 27 announced that Twitter CEO Jack Dorsey and NBA Commissioner Adam Silver are scheduled to have a conversation with ESPN anchor Rachel Nichols at next month’s Consumer Electronics Show Jan. 8-11, 2019in Las Vegas.

The session, “#NBATwitter: A Conversation with Adam Silver and Jack Dorsey,” will discuss the NBA’s approach to sports technology with a spotlight on #NBATwitter.

Moderated by Nichols, Dorsey and Silver will speak from the CES Sports Zone Stage at 1:30 PM, on Jan. 9 at ARIA, Level 3, Primrose Ballroom 2-3.

“The partnership between Twitter and the NBA illustrates the ever-growing symbiotic relationship between sports and technology,” Gary Shapiro, president and CEO, CTA, said in a statement.

CES 2018 saw every sports league represented, including Major League Soccer, MLB, NASCAR, NBA, NCAA, NFL, NHL, U.S. Olympic Committee and WWE. Professional athletes, such as Shaquille O’Neal, Charles Barkley, Joe Montana, Landon Donovan, Bryce Harper and Michael Phelps made appearances and contributed to the narrative surrounding sports technology innovation.

CES 2019 will be no different.

Returning to the annual confab for 2019, the CES Sports Zone will feature the latest tech innovation impacting all facets of sports – from athletic performance to fan engagement and the business of sports on and off the field.

In addition to exhibits, the Sports Zone conference program will feature athletes and industry experts as they explore the future of sports technology, including the quantified athlete, immersive fan experience, smart venues and eSports. Another aspect is the CES Sports Zone Lounge hosted by Sports Innovation Lab and sponsored by the NFL Players Association.

CES attendees will be able to experience eSports firsthand via The Gamespot eSports truck located in the CES Sports Zone of Tech West (#45822). Featuring 10 gaming kiosks for both professional gamers and attendees to showcase their skills in Mario Kart and the newly released Super Smash Brothers, the truck will host a series of competitions and invite all to take part in periods of open play.

Some 4,500 exhibitors will unveil technology across every major industry at CES 2019, across a show floor spanning 2.75 million net square feet.

Warriors’ Stephen Curry’s soft shot in losing effort against the Los Angeles Lakers on Christmas Day.

AT&T’s John Donovan to Deliver Keynote on 5G Opportunities at CES

AT&T Communications CEO John Donovan will lead a keynote session titled “New Frontiers in Mobile” at CES 2019, the Consumer Technology Association announced.

Donovan will join MediaLink Chairman and CEO Michael Kassan to discuss opportunities for 5G, the next generation technology for mobile.

Owned and produced by CTA, CES 2019 takes place Jan. 8-11 in Las Vegas. The keynote will begin at 2 p.m. Jan. 9 at the Park Theater, MGM Park.

Presented by MediaLink, the keynote will explore how 5G will open up opportunities for robotic manufacturing, AR/VR and mixed reality, sporting experiences and public safety, among other industries. After Donovan’s talk, a panel of industry executives will discuss how global companies are developing marketing strategies to best engage consumers in this mobile, data-driven world. Confirmed keynote panelists include National Geographic CMO Jill Cress, Deloitte Digital CMO Alicia Hatch, Magic Leap CPO Omar Khan, Adobe CMO Ann Lewnes, The Stagwell Group president and managing partner Mark Penn, and Ascential Events president and Cannes Lions chairman Phil Thomas.

“AT&T is a leader in the next-generation of connected mobility that will impact every aspect of our lives, and 5G is the platform that will enable that transformation,” said Gary Shapiro, president and CEO, CTA, in a statement. “We are excited to have John Donovan and Michael Kassan lead this powerful CES keynote that will delve into the new world of 5G innovation and the next wave of connectivity.”

Donovan is responsible for the bulk of AT&T’s global telecommunications and U.S. video services businesses, including its Business, Mobility and Entertainment, and Technology & Operations groups, according to a CTA press release. Previously, Donovan served as chief strategy officer and group president, AT&T Technology and Operations, where he led strategic planning for the company overall.

Kassan founded MediaLink in 2003, a strategic advisory firm serving companies at the intersection of media, marketing, advertising, technology, entertainment and finance.

CES 2018: From Consumer to Concept

The 2018 CES in Las Vegas marked a continuation of the trade show’s rather rapid shift from consumer to concept.

Once again, there was significantly less emphasis on traditional consumer electronics and more of a focus on technological innovation, from driverless cars to drones, from connected homes to voice-activated anything.

The “wow” factor dominated the show floor, even as Mother Nature flexed her muscle, with the city flooded by a rainstorm on opening day and the show virtually shut down for nearly two hours on day 2 by a blackout show organizers attributed to the rain.

In the old days, visitors to CES – which this year saw more than 3,900 exhibitors  showcase their technologies on a record 2.75 million net square feet of exhibit space across Las Vegas – could expect to see many of the products on display available for purchase later in the year.

But in recent years, CES has become something of a proving ground for tech firms engaged in a game of one-upmanship – resulting in a parade of technological marvels that, like concept cars, may never come to market.

Indeed, the show floor at CES 2018 was something of a theme park, with people lined up outside several of the bigger booths for scheduled shows.  At the LG booth, visitors were led through a winding canyon of curved TV screens showing majestic waterfalls and other natural wonders. At the Panasonic booth, visitors were treated to an elaborate stage show highlighted by a woman dressed as a robot. And at Samsung, the star attraction was a 146-inch TV, dubbed The Wall, that through modular MicroLED technology can be adjusted to better fit your room by removing or adding pieces.

This focus on futuristic technologies rather than new and improved CE gadgets prompted show producer the Consumer Electronics Association to officially change its name to the Consumer Technology Association in November 2015.

At the time, CTA president Gary Shapiro said in a press release, “Several years ago, our executive board directed us to focus on promoting innovation….The name Consumer Technology Association addresses that.”

For show attendees from the home entertainment sector, prospects of an HDR (high dynamic range) format competition came out into the open. On the eve of the show, Twentieth Century Fox, Samsung and Panasonic announced a push for HDR10+, a non-royalty HDR technology also supported by Warner Bros. Panasonic and Sony displayed 4K UHD Blu-ray Disc players with Dolby Vision’s HDR technology, which is not royalty tree.  And Philips/Technicolor (aligned with LG) touted Advanced HDR by Technicolor, which representatives said promises a cheaper HDR solution that is especially convenient for broadcasters because they  don’t have to employ multiple teams to shoot the same live event. (Shooting in HD as well as 4K with HDR requires two sets of cameras/teams with HDR10+ or Dolby Vision, the Technicolor reps said.)

“CES was just a preview of the tremendous technological innovations to come in augmented and mixed reality as evidenced by the proliferation of devices and experiences being touted at the show,” said Danny Kaye, EVP of 20th Century Fox, and managing director of the Fox Innovation Lab. “Couple that with the onset of 5G and the broad range of support shown for HDR10+, and we’re on the brink of a fundamental shift in the way in which consumers view our content across all of their devices.”

At an event highlighting the Fox Innovation Lab’s VR project Isle of Dogs and HDR10+ support, Karen Gilford, GM of digital locker Movies Anywhere offered an update on its progress since the October launch. At 81 days after launch, consumers had placed nearly 80 million movies in lockers and had streamed more than 3 million hours of content, she said. The locker launched with more than 7,500 movies from five studios — Walt Disney (including Pixar, Marvel Studios and Lucasfilm), Sony Pictures Entertainment, Twentieth Century Fox, Universal Pictures and Warner Bros. Entertainment — and with retail support from Google Play, Amazon Video, iTunes and Walmart’s Vudu.

“Movies Anywhere gives fans more control over their libraries with innovative product features that deliver a great experience,” Gilford said. “As the app continues to gain traction, consumers can expect to see the integration of new partners and a continued evolution of product features that serve them in unprecedented ways.”

New release and seasonal titles have been the top performers across redemptions and purchases, she said.

Added Keith Feldman, president, worldwide home entertainment, Twentieth Century Fox, “Movies Anywhere advances the experience of our most avid consumers and serves these highly engaged movie fans with relevant and unique content when their interest is at its peak, strengthening the entire entertainment ecosystem.”

In other show news:

  • Chinese TV manufacturer TCL announced plans to join Roku’s “Whole Home Entertainment Licensing Program,” a new platform enabling OEM brands to incorporate voice-activated Roku Connect software as a home entertainment network. TCL manufactures Roku-branded TVs. “Consumers will love the benefits of … having more affordable options –using their voice, having a simplified set up and Wi-Fi connectivity, and holding just one remote control,” said Roku founder/CEO Anthony Wood.
  • LG Electronics  showcased what it said is the world’s first 88-inch 8K OLED display featuring 33 million pixels — four times the clarity of 4K Ultra HD. “OLED is clearly a next- generation technology leader and for this reason, LG Display is accelerating its research and development into OLED so that we can provide  differentiated products to customers and markets,” CTO In-Byung Kang said in a statement.
  • Digital platform security firm Irdeto announced the launch of its next-generation piracy control solution. The new online piracy detection and enforcement solution provides data-driven web video discovery tools with expert analyst oversight, multi-language site searches, integrated social media and search engine discovery, as well as peer-to-peer stream discovery such as SopCast and Ace Stream, according to Irdeto. These new features enable content owners and distributors to quickly and accurately identify and then shut down pirated content across streaming video on demand, direct download and hybrid pirate websites.
  • Media services company Pixelogic announced its London facility is the first in Europe to offer Dolby Vision UHD Blu-ray authoring with its proprietary Dolby Vision authoring tools. Since launching the service last year, Pixelogic has delivered more than 20 UHD Blu-ray Disc titles in Dolby Vision authored in its Los Angeles office, including BBC Worldwide’s first Dolby Vision UHD Blu-ray title, Earth: One Amazing Day. Other titles include Despicable Me and Despicable Me 2 for Universal Pictures Home Entertainment, Lionsgate’s Saban’s Power Rangers, and Sony Pictures Home Entertainment’s Resident Evil: Vendetta.
  • Samsung announced what it billed as “the world’s first QLED TV featuring 8K AI upscaling technology.” This technology upscales standard definition content to 8K by employing a proprietary algorithm to adjust screen resolution based on the image quality characteristics of each scene. The technology “uses a proprietary algorithm to improve the TV’s picture performance regardless of native image,” said David Das, SVP, consumer electronics marketing, Samsung Electronics America. This includes detail enhancement — upgrading standard definition content, noise reduction, edge restoration function — which more clearly outlines on-screen objects, according to Samsung. “The TV intelligently upscales the resolution to an 8K viewing experience,” Das said.

Stephanie Prange and Erik Gruenwedel contributed to this report.