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New media services — like music streaming platforms and SVOD services — are not only reshaping how content is consumed, but are also impacting consumer tech adoption and device sales, according to two new reports released at CES this week.
As media streaming services continue to rise in popularity, consumers are more likely to adopt emerging consumer tech that supports or augments the services.
In 2019, video and music subscription streaming services are projected to generate $25.7 billion in revenue in the US, up 25% versus last year, per a report from the Consumer Technology Association (CTA).
Of that overall figure, SVOD will account for $18 billion, up 27% year-over-year (YoY), with $7.7 billion going to streaming music services, up 22% YoY.
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Meanwhile, the vast majority of smart home device adoption worldwide is being driven by devices that support new media, like video and voice, per a report from the International Data Corporation.
Smart video entertainment tech like smart TVs and connected set-top boxes or sticks will account for about $201 billion in revenue by 2022, up from $133 billion in 2017; while smart speakers will drive about $17 billion by 2022, up from just $4 billion in 2017. For context, the next three smart home device categories (home monitoring/security, thermostats, and lighting) are projected to have a total combined value of just $20.5 by 2022.
As consumers seek versatile interfaces to access a diverse range of streaming media, we expect households to continue to gravitate to connected-TV devices in particular.While smart speakers have their own use for entertainment — most owners use the devices to stream music, and are excited by the notion of listening to stories, like audiobooks, for instance — we expect connected-TV devices to be the cream of the media consumption crop.
Already, sales of connected-TV devices (e.g. Roku, Fire TV, Apple TV) are likely eating into TV unit sales, a trend noted by Axios per the CTA report, with US TV unit sales expected to drop 1% in 2019 versus last year to about 42 million.
TV unit sales are likely to continue slowing as consumers opt for cheaper connected-TV plug-in devices that can easily transform existing televisions into versatile media interfaces, capable of a range of functions including playing music or connecting to Netflix.
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