Music streaming services will generate $8.4 billion in the U.S. alone this year, a 33% spike over 2018 revenue, according to a new Consumer Technology Association report.
In its mid-year report, “U.S. Consumer Technology Sales and Forecasts,” the CTA predicts revenue from the likes of on-demand retailers like Spotify, Apple, Pandora and others will rise with the increased adoption of wireless earbuds and smart speakers.
Consumers will spend $26 billion on music and video subscription services this year, up from $20.4 billion last year and almost twice the total from 2017. Subscription video streaming services are expected to generate $17.7 billion in 2019, up 25% over 2018. That is still dwarfed by video games, which are expected to generate close to $39 billion in revenue in the U.S., according to the CTA. By 2020, games are projected to bring in nearly $42 billion.

The report includes  one possible Donald Trump-related note of caution, though.

“Enthusiasm for AI-powered technologies is skyrocketing — more consumers are discovering for themselves how tech innovation can change their daily lives for the better,” said CTA President/CEO Gary Shapiro. “And with 5G delivering the faster connectivity we’ll need for anytime/anywhere streaming, smarter home robotics and more advanced vehicles, consumer excitement will only grow, but unnecessary tariffs — taxes paid by American consumers and businesses — threaten to slow down our nation’s economic momentum.”
Overall, the CTA forecasts that revenue from the U.S. consumer tech industry will rise 2.2% over 2018 to $401 billion. Wireless earbuds, including Apple AirPods and Beats by Dre Powerbeats Pro, are expected to approach $2 billion, a 46% increase, and will see double-digit growth over the next few years.
Spending on software and services (including music, video and gaming services) is projected to reach a new high of $75.6 billion in 2019, a rise of 14%. Smart speaker sales are expected to level off. Multi-year projections do not take into account changes in trade laws, interest rates and federal policy. Any expansion of Trump’s declared tariffs with China would potentially derail CTA’s bullish forecast.

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