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2014: The year of tech, media and telco convergence – Deloitte report

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Google glass: 2014 will see growth of wearable devices with the report predicting sales of smart glasses, watches and wristbands reaching 10 million units in total this year.

If 2013 was the year of exploration and pushing the boundaries in technology, media and telecommunication, 2014 will see these three sectors converge in new ways and cause a faster adoption of connected devices by consumers. This is according to Deloitte’s Technology, Media and Telecommunications Predictions report which also identifies processor speed, connectivity and storage as the key pillars of disruption in the sectors.

“For the past decade, these three drivers have enabled massive advances in the utility, ubiquity and spend on connected devices. In 2014, we expect five connected devices which constitute the converged living room – TVs, PCs, video game consoles, smartphones (including phablets) and tablets – to generate $750 billion in revenue,” states the 2014 TMT report.

The report notes tablets will reach maturity in 2014 with developments moving towards diverse use and favorable price range. With tablet vendors emphasizing ruggedness as a key differentiator, 2014 will see sturdy tablets as users consider durability as a factor when purchasing a device. We are also likely to see consumers preferring lighter tablets with smaller screens of 8-inche or less.

In 2013, several tech corporations like Google and Samsung made significant steps in making wearable devices. 2014 will see adoption and growth of wearable devices with the report predicting sales of smart glasses, watches and wristbands reaching 10 million units in total this year.

“This will generate about $3 billion in revenue; significant, but modest when compared to revenues from devices in the converged living room.”

The growth of smartphones, tablets, PCs, TV sets and video game consoles will slow down as some markets reach saturation.

“Revenues for each individual category may turn out to be somewhat higher or lower than expected, but combined sales across all five categories are likely to be fairly steady and predictable – plateauing at roughly $800 billion annually after a decade of double digit growth.”

Another growing but subtle disruptive technology is Massive Open Online Courses (MOOCs). These online schools will see an increase of 100 percent increase in student registrations according to Deloitte. Although the enrollment in MOOCs is encouraging, the completion rate is an issue of concern with only 0.2 percent of all tertiary education-equivalent courses completed in 2014.

In media, we will see a deeper integration and convergence of media and internet. The media industry will be disrupted by digital broadcasting and TV-on-demand bundled with broadband which will have a ripple effect on how content is produced and consumed. In 2013, we saw TV streaming service Netflix venture into creating original content which proved popular with the audience.

“Content producers should consider how ever-improving broadband speeds opens up new markets for them; they may no longer have to deal directly with platform owners to reach end-users,” the report notes, and adds, “Platform owners should tap into growing demand for additional pay-tv subscriptions to increase their addressable market, by offering their content over-the-top to those who do not subscribe to their service.”

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Other media areas that will be on the watch list 2014 include precise TV viewer measurement, spend for bidding for sports rights will increase and artistes will continue to enjoy the earnings as performance fees go up.

Full report: Deloitte’s Technology, Media and Telecommunications Predictions report

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