American consumer spending on subscription-video services will increase 29% in 2020, hitting an estimated $24.1 billion, according to a video subscription forecast from the Consumer Technology Association.
New streaming services like Disney Plus and Apple TV Plus are already increasing consumer spending, notes a Variety report about the CTA research. The report adds that soon-to-launch services like WarnerMedia’s HBO Max, NBCUniversal’s Peacock and Quibi, the mobile-video startup led Jeffrey Katzenberg and Meg Whitman are expected to push consumer video subscription spending even further.
In addition to subscription video services, streaming music will be a high-growth segment in 2020, according to the CTA study. On-demand music services including Spotify, Apple Music and Pandora will grow to total $9 billion in revenue, up 15% from 2019
Overall, the CTA projects the U.S. consumer tech industry will hit a record $422 billion in retail revenues in 2020, up 3.9% year over year. The trade group released its research to kick off CES 2020, its annual consumer-electronics trade show in Las Vegas.
The CTA also expects an increase in hardware spending as wireless earbuds, smart home devices and smart speakers become more popular.
Among other CTA projections :
- Smartphone providers will have revenue of $79 billion (up 3%) on shipments of 166 million units (up 2%), helped by the wider availability of 5G wireless networks.
- Laptop shipments will grow 1% to nearly 53 million laptops; revenue will also grow 1%, to $33 million.
- Television manufacturers will ship 40.8 million television units in 2020 (2% increase) representing $23.4 billion in revenue (flat compared to 2019). In 2020, 4K Ultra HD sets will account for 25 million units (up 12%) and $17.6 billion in revenue (up 2%) while 8K UHD TVs will sell an estimated 504,000 units and represent $1.6 billion in revenue.
- Factory-installed in-vehicle technology will grow by 6% to $18.5 billion in revenue in 2020, driven by autonomous safety and entertainment features in new car models.