Spending on Streaming Services Expected to Reach $22 Billion Next Year
With the launches of Apple TV+, Disney+, HBO Max and Peacock rolling out in the coming months, a new report by the Consumer Technology Association (CTA) is predicting that spending on streaming services will continue to grow by 24 percent, reaching $22 billion next year. The CTA estimates that 2019 spending will reach $17.7 billion this year, up 25 percent from $14.1 billion a year ago.
The CTA also reported that smart TV sales are expected to go up by four percent to 29 million next year from 27.9 million this year—making up 74 percent of all new TV sets to be sold in 2020.
Streaming media players on the other hand, are expected to see slower growth, rising 10 percent to 19.9 million in 2019 and up expected to go to 20.7 million in 2020.
The study also showed that while consumers feel positive about the integrated interface of smart TVs, not all smart TV app software comes with the wide range of channels that is often offered by streaming players. Roku, for example, offers an array of 1,800 selections in its channel store.
Free, ad-supported services such as Pluto TV, Xumo or Tubi will also contribute to streaming growth.