STREAMING TO TOP $8B IN 2019: REPORT

On-demand music services will pull in $8b 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 Apple Music, Pandora, Spotify and others will rise in tandem with the increased adoption of wireless earbuds and smart speakers. There’s only a single Trumpian hurdle that has the CTA waving a caution flag.

“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 is predicting revenue from the U.S. consumer tech industry will rise 2.2% over 2018 to $401b.

Wireless earbuds such as Apple AirPods and Beats by Dre Powerbeats Pro are expected to approach $2b, 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 $75.6b in 2019, a rise of 14%. Smart speakers 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 tariffs with China would potentially derail CTA’s forecast.