Deloitte is out with its Technology, Media & Telecommunications 2024 Predictions and the report is bullish on audio. “The audio entertainment market is on the cusp of significant growth,” the advisory firm says. Its annual TMT report calls for the global audio market to surpass $75 billion (USD) in 2024, for a 7% hike across formats including podcasts, streaming music, radio, and audiobooks. “Podcasts offer untapped potential for per-user revenue,” Deloitte says.
“Next year will mark a pivotal juncture in the media and entertainment sector,” says Kevin Westcott, Deloitte Consulting LLP’s Global Telecommunications, Media & Entertainment Sector Leader. “We see women's elite sports crossing the billion-dollar threshold, it's not just a win for athletes but a signal of a more inclusive future in entertainment. On the streaming front, the expansion of subscription tiers is a significant leap toward profitability, moving beyond just subscriber acquisition. This dual focus—on social impact and fiscal responsibility—represents a balanced approach to growth that's imperative for long-term resilience.”
The report predicts generative AI (Gen AI) chip sales will reach over $50 billion (USD) in 2024 as nearly all enterprise software companies integrate gen AI in at least some of their offerings by the end of 2024, which could boost revenue by $10 billion. The report predicts that many enterprise software companies should experience a revenue uplift at a run rate of $10 billion (USD) by the end of 2024—a remarkable milestone for the first year of a new market, but likely short of some expectations as revenues could occur mainly in the back half of the year.
As AI fast tracks across industries, regulatory bodies will quickly respond. The European Union is set to roll out sweeping regulations on AI which are likely to impact and influence markets around the world. Next year is likely to see a balance between regulatory compliance and innovation in the gen AI industry. Well-crafted policies can create a conducive environment for investment, the report says. Key regulations could encompass consent, bias mitigation, and copyright matters.
“In 2024, the technology sector is set to cross a new threshold with generative AI taking center stage,” says Gillian Crossan, Global Technology Sector Leader, Deloitte & Touche LLP. “Once considered a concept, gen AI is now pivoting from the periphery to becoming a bedrock of enterprise innovation.”
Beyond shedding light on the growing clout of generative AI, the report tackles the complexity of integrating sustainability into technology, telecommunications, and semiconductor business models, and explores fresh revenue streams catalyzed by satellite-terrestrial network synergies.
Streamers, for example, could look to gain profits, not just subscribers in 2024, Deloitte says, by doubling the number of subscription models they offer, going from deluxe ad-free tiers to options with more ads and less content.
“As we move into 2024, the transformational capacity of generative AI, sustainability imperatives, and novel revenue paradigms may indelibly shape the TMT landscape,” said Ariane Bucaille, Global Technology, Media & Telecommunications Industry Leader, Deloitte France. “This coming year is an important moment for the industry; it offers not just growth opportunities but unprecedented challenges that compel us to rethink traditional frameworks and relentlessly innovate.”
Read more of Deloitte’s Technology, Media & Telecommunications 2024 Predictions HERE.