2024 Global

TMT Predictions
What’s next for technology, media, and telecommunications?
2024 Global
TMT Predictions
Generative AI
o Generative AI and
enterprise software: What’s
the revenue uplift
potential?
o Gen AI chip demand fans a
semi tailwind…for now
o Taking control: Generative
AI trains on private,
enterprise data
o Walking the tightrope: As
generative AI meets EU
regulation, pragmatism
is likely
Sustainability
o A raw deal: Will materials
shortages, supply chain
challenges threaten tech's
future?
o Semiconductor sustainability:
Chips take a smaller byte out
of resources
o Dialing down the carbon: Telco
sustainability surges on the
back of four new trends
o ESG reporting software sales
expected to soar as regulations
take effect
o On solid ground: AgTech is
driving sustainable farming
and is expected to harvest
US$18 billion in 2024 revenues
Media, Entertainment
and Sports
o Women’s elite sports: breaking
the billion-dollar barrier
o Driven to tiers: Streaming video
services look to up their
profitability game with viewers
o Cinematic and interactive
universes: Games and studios
come together to bring the
biggest stories to life
o Shuffle, subscribe, stream:
Consumer audio market is
expected to amass listeners in
2024
o Will endless low cost content
do to gaming what it did to TV
and film?
Telecom and
Technology
o Smartphone authentication:
The killer app that can
augment the smartphone’s
utility
o Signals from space: Direct-to-
device satellite phone
connectivity boosts coverage
o No bump to bit-rates for digital
apps in the near term: Is a
period of enough fixed
broadband connectivity
approaching?
o Keeping it local: Cloud
sovereignty a major focus of
the future
o Life after debt: Venture debt
funding could grow again in
2024
2
Meet the Authors

Brooke Auxier Bree Matheson Ben Stanton Chris Arkenberg David Jarvis Duncan Stewart

Research Manager Research Manager Manager Research Manager Senior Research

Director of TMT
Manager
TMT Research Center TMT Research Center TMT Insights TMT Research Center Research
TMT Research Center
Deloitte Services LP Deloitte Services LP Deloitte LLP Deloitte Services LP Deloitte Services LP Deloitte Canada

Jeff Loucks Jennifer Haskel Karthik Ramachandran Michael Steinhart Paul Lee Susanne Hupfer

Executive Director Knowledge & Senior Research Research Manager Partner Research Manager
Insights Lead Manager
TMT Research Center TMT Research Center TMT Insights TMT Research Center
Sports Business Group TMT Research Center
Deloitte Services LP Deloitte LLP Deloitte UK Deloitte Services LLP
Deloitte LLP Deloitte Services (USI) 3
A note to the audience: About this webinar
presentation
o The following content is a high-level overview of the 2024 Global TMT
Predictions edition.

o This presentation is for Deloitte-only webcasts and launch webinars.

o For full Predictions report and to access each of the individual

chapters discussed in this presentation, including all end notes,
sources and complete references – please access it here:
www.deloitte.com/predictions

4
 Gen AI is coming to enterprise software, but expect competition between vendors who want
Generative AI to charge per user and IT departments that believe generative AI features should be free.

Generative AI and Deloitte surveyed the 50 largest

enterprise software:
What’s the revenue
enterprise software companies, and
That number might be lighter than some
of the more optimistic forecasts. Some
all of them offer or plan to offer a
software product with gen AI inside.
products are not launching until mid-
2024, gen AI chip hardware is in shortage
and expensive, and some vendors are
not charging for it at first.

uplift potential?
2024 will be a ramp year, and we
predict that enterprise software
revenue uplift from gen AI will be at a
US$10 billion run rate by the end of
2024 -- from zero dollars in 2022.
More than 70% of companies are
experimenting with gen AI, but less than
20% are willing to spend more on it.

Enterprise software revenue uplift from gen AI will

be at a US$10 billion run rate by the end of 2024
Predicted enterprise software revenue uplift
from gen AI (US$ billions)

Source: Deloitte analysis. 5

The price is right?
o There are three big gen AI software markets: productivity
suites; broad software verticals like ERP, CRM, document
management, etc.; and specialty verticals like chip design,
CAD/CAM or software development tools.
o In that latter category, gen AI inside software is core to
the product.
o Offering gen AI inside is not free: costs per query can be
US$0.01-$0.36, and services charging US$10 PUPM could
be losing US$20 per month, with some users costing
US$80. Vendors need to recoup their costs.
Why Does
It Matter?
IT spending is expected to be US$1.6
trillion in 2024, and there are over a
billion knowledge workers. If buyers are
willing to pay US$10-30 per user per
month (PUPM), the addressable market
would be well over US$400 billion. The
potential revenue uplift could be
transformative.

o Those costs might come down a lot in 2024. Although

gen AI chips are currently in shortage and priced at a
premium, more capacity, new entrants and doing more
at the edge could bring lower prices.

6
What should companies consider?

One potential alternative between high PUPM

pricing and free “table stakes” gen AI could be a
hybrid model: the more you use, the more you pay. Bottom Line

With both an EU AI Act and a US Executive Order,
compliance with various regulations may pose
challenges but should be managed.
Training on private enterprise data may help mitigate
risks around hallucinations, IP, bias, privacy and
security.
In one study, knowledge workers
using gen AI tools did more,
faster, and at higher quality than
those not using the tools. If that
kind of ROI is proven out more
widely, US$10 billion in 2024
could just be the start of the gen
AI revenue uplift.

Gen AI inside enterprise software is likely to be a

gateway for many companies: they may not build
their own hardware at first, but could access it
through vendors and through the cloud.

7
 Belgian enterprises will adopt Gen AI technology at a supercharged pace,
Generative AI following the global trend...

Generative AI and Generative AI market size in Belgium

In Billion USD, source: Statista

enterprise software: +393%

1,8
1,5
What’s the revenue 1,1
1,3
0,9
uplift potential? 0,4
0,5
0,7

2023 2024 2025 2026 2027 2028 2029 2030

… And Belgian AI scale-ups will help companies in the adoption, by leveraging global Gen AI
models and tailoring them to local needs

Henchman’s multi-LLM approach Radix helps businesses grow through

empowers legal professionals to the use of AI. The output is often an
save countless hours on contract AI assistant that helps employees be
work more efficient/productive

AI-based platform for regulatory

Leveraging AI, Wequity provides
compliance in autonomous mobility. It
investors with in-depth, real-time
helps companies keep track of and
insights for making informed
understand all relevant compliance
choices
documents

Note: non-exhaustive list

8
 More companies, seeking to avoid the risk of models trained on public data, are expected
Generative AI to train generative AI on their own data to enhance productivity, optimize costs, and
unlock complex insights.

Taking control: The initial wave of generative AI has

Generative AI trains on
private, enterprise data
been primarily consumer-facing and
In 2024, Deloitte predicts that
enterprise spending on generative
trained on public data, but more
private models are being trained on
AI will grow by 30%, from an
estimated US $16 billion in 2023.
proprietary and domain-specific data.

Companies that have been The main limitations to growth will

accumulating data for years now have likely be access to talent – and GPUs -
an opportunity to unlock more of its but companies also seek clear use
value with generative AI. cases and proper data preparation.

9
Private models can minimize risk Why Does
and unlock more value from data It Matter?
o Growth in enterprise spending on generative AI is
broadly predicted to grow significantly in the coming
year. Private models can help de-risk
o Public models have shown the value of generative AI but
some of the challenges of
have also highlighted challenges with biases, copyright publicly-trained generative AI
violations, and inaccuracies from training on public data. while offering companies ways to
o Because public solutions can introduce unwanted risk, use their data better. But there
more companies are looking to deploy their own models
trained on their private data.
are significant considerations in
costs and implementation.
o Private models can be custom-made with guardrails and
policies built-in to protect data privacy and minimize
hallucinations, inaccuracies, and unwanted results.

o Generative AI can also help companies get a better lens

on their data, combining a conversational and visual
interface with the ability to process complex queries and
large amounts of information.

10
What should companies consider?

Training with private data can avoid some of the

pitfalls of public models but may still require efforts to
make them trustworthy and accurate. Bottom Line

Models require good data. Companies should Combining private data and
understand the requirements of data conditioning generative AI could help
and abide by leading practices and compliance rules
for data management. companies optimize their costs
and unlock value in their data,
while avoiding the challenges of
Companies should carefully consider the costs in public models. Doing so may be a
talent, computation, and time to develop, deploy,
and operate a model, compared to the anticipated competitive advantage to a
path to ROI. standard operating model.

There are different pathways and the “right”

approach should reflect a company’s unique needs
for cost, performance, security, data types, and
strategic objectives.

11
 2024 is likely to see a balance between regulatory compliance and fostering innovation in
Generative AI the generative AI industry.

Walking the tightrope: The European Union (EU) is expected

As generative AI meets
to set the stage for global regulation
These are the General Data Protection
Regulation (GDPR, applicable since
of generative AI in 2024, influencing
its own markets and also serving as a
2018), and the upcoming EU AI Act (AIA),
expected to be agreed in early 2024.

EU regulation, template for other regions.

pragmatism is likely In 2024 two EU regulations are

expected to help shape the growth of
the generative AI market in the region
and further afield.
The EU regulation on generative AI is
likely to be among the first set of
regulations to be agreed that could
have a global impact.

Scope of EU regulation

Directly applicable to Other markets may Multinationals, as well as

vendors operating from
any market that are selling
into, or targeting users in
EU countries
use EU regulation those complying within the
as a template European Union, may apply
their AI governance
(including that specific to
generative AI) globally

12
The majority of EU regulation Why Does
relating to generative AI should be It Matter?
relatively clear by Q1 2024
o All companies looking to offer or deploy generative AI
solutions should monitor developments in the AIA Providers and Deployers will be in scope:
while also maintaining compliance with the GDPR.

o Generative AI is expected to need to comply with the A provider is a person, public authority, agency,
GDPR on processing of personal data. A fundamental or other body that develops or commissions an
tenet of EU regulation is that individuals’ personal data
AI system with a view to making this publicly
use is grounded on applicable legal grounds.
available, for a charge or for free.
o GDPR includes a suite of rights with regards to
personal data. If data is incorrect, an individual can ask
A deployer is a person, public authority, agency,
for it to be corrected. If the data subject no longer
wants their personal data to be associated with or or any other body using an AI system under its
processed by that organization, they can ask for it to authority. In some contexts, a deployer may be
be deleted.
considered a provider. This would be the case if
the deployer uses an AI system for a high-risk
o The foundation models that underpin generative AI are
trained on myriad websites that may contain errors.
application.

13
What should companies consider?

Bottom Line
European regulation matters. It is likely to have
extraterritorial as well as regional impact.

At first glance several existing principles of EU The importance of well-crafted rules

regulations that apply to digital services may have should not be overstated when it
seemed to present major obstacles to the growth of
the generative AI market. comes to unlocking the potential of
any market.

In 2024, and beyond, vendors and regulators are likely to

aspire to collaborate to attain an outcome that works for
consumers, enterprises, vendors, and society in general.
In the case of generative AI, the
absence of clear regulatory conditions
may cause vendors, enterprise
customers, and end-users to hesitate.

Governments are acutely aware of the importance of

enabling innovation in generative AI, for example via
regulatory sandboxes.

14
 Belgian consumers think that they are not protected enough against Gen AI
Generative AI pitfalls…

Walking the tightrope: Of Belgians that have used

Gen AI believe that it always
Adapted General Data Protection
As generative AI meets produces accurate
answers1
Regulation (GDPR, applicable since
2018)
EU regulation, Believe AI will have the
most impact in the next 5
pragmatism is likely years2
Provisional EU AI Act (AIA),
Of Belgians think that there is expected to be passed in the
insufficient protection following months
regarding Gen AI1
Source: (1) Deloitte Consumer Trends Survey 2023, (2) Belgian Tech Survey 2023

Belgian institutions are proactively assisting with the local regulation, education and
adoption

Knowledge Centre for legal, ethical

Community driven Initiative and societal aspects of artificial
focused on responsibly seizing AI intelligence and data-driven
opportunities in Belgium applications

VUB/ULB AI initiative that helps

Walloon program to accelerate the
citizens, politicians, companies and non-
adoption of AI in Wallonia and
profits address AI challenges in Brussels,
strengthen its ecosystem
Belgium, and Europe

Note: non-exhaustive list

15
 Telecommunications companies can reduce their carbon footprint by shutting down
Sustainability copper wire and 3G wireless networks, changing their field service fleets to EVs, and
switching to 5G radio gear that has a ‘snooze button.’

Dialing down the carbon: Telcos connect 95% of the world’s

Telco sustainability
surges on the back of
four new trends
population and are responsible for
Copper switch off is planned for 10
markets in Europe in 2024.
only 1.6% of global GHG emissions,
or 600 million tons CO2e.
The four approaches above could help Telcos already are buying more
the industry reduce emissions by as
much as 2%, or 12 million tons CO2e
renewable energy (up to 100%), making
network gear and data centers more
in 2024, and same again in 2025. efficient, and promoting the circular
economy.

16
These four sustainability Why Does
approaches are accelerating It Matter?
in 2024
o Copper telephone lines run at 48 volts. Shutting down
copper networks and switching to fiber can use up to
80% less energy, both on the twisted pairs to homes and
Telcos are publicly listed,
central office exchanges. Plus fiber is easier to maintain. consumer-facing, for-profit
companies, and improving
o Older generation wireless networks use a lot of power
and carry relatively little traffic: shutting down 3G
sustainability can help comply with
networks can reduce energy use by 15%...and the regulations, attract subscribers
spectrum can be re-farmed for 4G or 5G.
and investors, and even help the
bottom line (energy is expensive,
o Telco field vehicle fleets are large and can be the biggest
source of Scope 1 emissions. Electrifying those field especially in Europe.)
fleets is now possible with more electric commercial
vehicles (van and trucks) coming on the market.

o 5G is fast, but the antennas use almost 70% more power

than 4G antennas. New tech gives 5G antennas a snooze
button, powering down when not in use, reducing
energy used by up to 94%.

17
What should companies consider?

It isn’t just copper that can be shut down. Cable

companies switching from coax to fiber would also
save energy. Bottom Line

Equally, there are still 2G networks in use, and Telcos are making use of
shutting those down will lead to additional (although multiple levers to improve
smaller) savings.
their sustainability profiles.

Low power antenna modes are supported for more

than just 5G: 4G LTE networks can also use this
technology (as can 3G and 2G, but they are being
shut down.)

Telcos can reduce their Scope 3 emissions by working

with smartphone makers and with customers to
promote extending the life of phones, reselling used
phones, and making sure they are recycled properly.

18
 Belgian telecom operators are acting on those 4 levers to improve their
Sustainability sustainability contribution

Dialing down the carbon: 1 2 3 4

Telco sustainability Decommissioning Phasing-out Switching Integrating new

surges on the back of

copper fixed network legacy mobile networks to EV generation 5G
fleet antenna’s & tech

four new trends

60,300 KM BY 2027 100% BY 2030 SLEEP FUNCTIONALITY
Decommissions 60,300 km Installs 5G RAN base
3G - By end of 2024 Fully ban fossil fuels use
of copper network - stations with “sleep
2G – By end of 2027 for vehicle fleet
5-year period to migrate functionality”

COPPER TO FIBER HFC TO FIBER ERICSSON

MIGRATION MIGRATION 1 Will gradually migrate BY 2027 60% BY 2030
PARTNERSHIP
customers towards FTTH
network after which HFC 60% mobile combustion Ericsson Operation Engine
3G – End of Sept. 2024
network may be reduction optimizes 5G energy
2G – Min. until 2027
decommissioned gradually efficiency

BY 2030
RAN-sharing agreement
with Proximus
3G – By end of 2025
No copper network
Notes: (1) Telenet visual represents commercial ambitions in # homes-passed; HFC- 2G – By end of 2030
Updates base stations to
network decommissioning will be a phased node-by-node lagging process
Nokia Single RAN
Source: Proximus Fiber Strategy, Telenet Capital Markets Day
19
 Sales of software solutions that help companies track and report on environmental, social,
Sustainability and governance (ESG) metrics will likely surpass US $1 billion this year.

ESG reporting software The EU’s Corporate Sustainability

sales expected to soar as
regulations take effect
Reporting Directive (CSRD) expands
The solution-provider market is
crowded, comprising ESG analytics
the number of companies required to
provide sustainability disclosures from
tools, ERP vendors, professional
services companies, and tech giants.
around 12,000 to over 50,000.

Proposed SEC rules are designed to
promote consistent, comparable, and
reliable information on funds’ and
advisers’ ESG activities.
Solutions may want to integrate with
back-end systems and collect data
automatically, outputting reports that
confirm to multiple regulatory and
voluntary frameworks.

ESG tracking software sales are expected to see a huge jump, with a CAGR ranging from
13% to 30% over the next five years
Estimated ESG reporting software growth
based on market size (US$)

Source: PitchBook market size

estimate data, July 2023

20
Net zero targets are Why Does
everybody’s business It Matter?
o Many large, global companies release ESG or corporate
sustainability reports voluntarily each year. These reports
are seen as important for investors, customers, and Global regulatory activities
potential employees. suggest that the time to
implement robust and
o Investors seem to recognize the long-term value creation
that ESG-focused companies bring in terms of risk comprehensive ESG tracking
mitigation, decarbonization, enhanced reputation, and and reporting software
stronger growth potential.
solutions is now.
o A challenge with current ESG reporting solutions is that
they may not be consistent or conform to accepted
frameworks.

o Noncompliance could bring fines and additional scrutiny,

so comprehensive solutions and collaborations may be
critical.

o ESG tracking and reporting may help reduce tangible risks

and create opportunities, including new business models.

21
What should companies consider?

Evaluate solutions that provide robust analytics for

Bottom Line
multiple data sources and report formats that
conform to CSRD, SEC, and other regulatory and
voluntary frameworks.

Custom reports and integrations are likely also

With stakeholder engagement
critical, based on the size and industry of the and a comprehensive view of
company and its global presence. operational and reputational
risks, ESG tracking can create a
competitive advantage.
Compliance will also require third-party assurance of
ESG reports. Auditors will likely have a larger role in
guiding companies around ESG frameworks,
standards, disclosures, and other opportunities.

Explore ways to leverage ESG data for operational

improvements and publicize reports to build
reputational goodwill and attract younger talent.

22
 Belgian companies will increasingly report their ESG performance, in line with the
Sustainability global trends

ESG reporting software Number of Belgian companies legally required to disclose their performance,
from 200 in 2023 to 2800 by 2026
sales expected to soar as
regulations take effect Of top Belgian companies1 have quantified their ESG ambitions

Of top Belgian companies consider ESG as a growth strategy

These companies will be supported by a local and vibrant ecosystem of ESG reporting
scale-ups

• Raised € 1,1 M
• Listed on the ESGFintech100 • "What sets us apart from other
• In alliances to distribute EU young companies offering
Taxonomy reporting solutions sustainability assessments is that
across Europe we focus on ESG and not on CO2
emissions.”

• Developed a modular and fully

integrated solution, built on top of
Microsoft Cloud for Sustainability
• Helps companies streamline their ESG
reporting process

1Anheuser-Busch InBev, Ageas, Agfa-Gevaert, Aliaxis, Allnex, Ardo, Azelis, Balta Group, Barco, Beaulieu International Group, Bekaert, Elia Group, Ergon Capital, Etex, Gimv, KBC,
Lotus Bakeries, Luminus, Milcobel, Proximus, Recticel, Reynaers Aluminium, Sibelco, Sofina, Solvay, Telenet, Umicore, Vandemoortele, Waterland 23
Media, Entertainment and Sports Interest from fans, broadcasters, and commercial partners is driving rapid growth in the
revenues of women’s elite sport. How can organizations continue to accelerate growth?

Women’s elite sports: Deloitte predicts that in 2024, revenue

generated by women’s elite sports will
breaking the billion- surpass US$1 billion for the first time,
with a forecast of US$1.3 billion in
dollar barrier total revenues.
North America (US$670m) and Europe
(US$181m) will be the largest markets,
with football/soccer (US$555m) and
basketball (US$354m) the largest sports
according to the predictions.

The largest contributor is expected to This total is projected to be at least

be commercial revenue at US$696m, 300% higher than when we last wrote
followed by broadcast at US$340m, our prediction on this topic in 2021.
and matchday at $240 million.

Total revenues for women’s elite sports are projected to pass the billion-dollar mark in 2024

Source: Deloitte
analysis, based
on public data. 24
Investment in women’s elite sports Why Does
organizations could lead to stronger It Matter?
performances and stronger earnings
o The value of sponsorship in women’s elite sport is likely to grow
rapidly in 2024, encouraged by impressive recent evidence of returns Surpassing the billion-dollar revenue
on investment.
milestone is expected to be significant,
o Opportunities for women’s club partnerships are continuing to especially given the turbulence of recent
develop. As the sport professionalizes, this may create new and years for elite sports.
specific sponsorship opportunities unique to the women’s game.

o A focus in 2024 and the following years, will likely to be to make

viewing habitual, rather than occasional. Deloitte expects that in 2024, Women’s elite sport is developing swiftly
women’s elite sports will continue to be given more prime time slots, in stature, but is also still nascent, with
becoming easier to find for both casual and avid fans.
many of the major leagues only
o As organizations continue to grow and professionalize, the price of established in the last decade, and many
tickets can be a lever for increased matchday revenues, expected to
lead many to increase prices over the next few seasons. territories yet to establish a mainstream
culture around women’s elite sports.
o Deloitte expects women’s elite sports team valuations to continue
rising in 2024, with further clubs exceeding the US$100 million
threshold.

25
What should companies consider?

Women’s elite sport should be developed as a

Bottom Line
product distinct from men’s elite sport. Women’s
sport should not simply duplicate men’s sport, but
rather adapt and innovate to suit athletes and fans.

Develop the pipeline of talent. Increased visibility

and investment in grassroots programs can help
lower the barriers to entry for young women
entering sport.
The impending billion-dollar milestone is
cause for celebration, but this is only the
beginning.

A virtuous circle is underway. Investment

Raise all profiles, nurture legends. Organizations
should focus on telling female athletes’ stories
outside of the pitch, court and field of play.
Women leaders in sport. In coaching, scouting and
management, more opportunities for women to
learn and participate should occur to ensure more
diversity at the top levels of sport.
in women’s elite sports is likely to lead to
better teams and a better product, which
in turn often becomes more valuable. It is
important that women’s sports – at elite
and grassroots levels – should be nurtured
both in 2024 and years to come.

26
Media, Entertainment and Sports Women’s elite sports are increasingly broadcasted and consumed in Belgium

Women’s elite sports: Viewers for the final of the 2023 Belgium is co-candidate to host Women

breaking the billion- European Women's Basketball

Championship
World Cup in 2027, alongside Germany
and Holland

dollar barrier
Number of BE broadcasted World Cup
football matches from 2019 to 2023
Cycling : Prizes equalization decided by
Flanders Classics for its 6 classical races
Hockey : Balancing remuneration in men’s
and women’s national hockey teams

In Belgium, professional women football is growing, but still a long way to go to create a
robust business model. Growing commercial revenue streams will be key

GROWING SPONSORSHIPS UEFA PRIZE MONEY

Unbundling sponsorships deals to enable UEFA Prize money, an uncontrollable

more targeted advertising for women- revenue stream for sports clubs, may follow
football audiences (i.e. shirt-sponsorship, the evolution of media rights value
stadium digital billboard advertising etc.)
27

Media, Entertainment, and Sports
Driven to tiers: Streaming
video services look to up
their profitability game
with viewers
In 2024, streamers are expected to charge more for premium content, fight churn with
longer subscriptions, and satisfy bargain hunters with more pricing tiers.
The TV and film industry is caught
between declining cable TV viewership
To broaden their appeal, retain cost-
sensitive subscribers, and reward
(and revenues) and costly streaming
video services.
premium subscribers, SVOD services are
expected to offer more tiers at more
price points – and with more conditions.
Streamers have been spending on In 2024, Deloitte predicts that the
content and subscriber acquisition number of SVOD tiers offered by the
but face persistent churn and top US providers will more than double
competition for attention among so from the 2023 average of 4 possible to
many entertainment options. an average of 8 tiers.
Number of SVOD tiers offered by the top US providers will more than double from the 2023
average of 4 possible to an average of 8 tiers
2023 2024P
Source: Deloitte analysis. 28
Streaming video is an Why Does
expensive business It Matter?
o The profitability of pay TV may never be recaptured, and
the streaming business has been very expensive with
high costs for content and subscriber acquisition.
The streaming video business is
o Streamers pursued subscriber growth at the cost of at an inflection point, shifting
profitability – or by subsidizing it from their pay TV from growth to profitability. This
businesses. Most have been unprofitable so far.
may require streamers to fight
churn and diversify revenues – or
o With persistent churn and strong competition,
streamers are challenged to make their offerings stickier examine if they’re in the right
and more profitable. business.
o Streamers will experiment with cheaper ad-supported
tiers, subscription contracts, bundles, and VIP programs
to attract and retain more subscribers, while diversifying
their revenue streams.

o They will be pressed to show more value to an array of

subscribers, and to the advertisers they’re courting to
subsidize subscriptions.

29
What should companies consider?

Streamers can look to the mechanisms and

Bottom Line
business models that helped media and
entertainment companies become highly profitable
before the streaming revolution.

Streamers may need to make money off every viewer
with tiers that offer options for premium subscribers
and bargain hunters; contracts and bundles that defer
costs; and premium access to premium content.
With more ad-supported tiers, streamers will also
need to focus on driving greater value to advertisers
– while understanding how their services compare to
all the other sources of video impressions.
Raising subscription prices,
adding contracts, and focusing
on advertising could itself be
disruptive to the streaming
business. But it may be the way
the business can become more
sustainable.

With so much competition and cost pressures, some

streamers may need to re-consider their strengths.
They may be better as content producers – or ripe for
acquisition.

30
 The Belgian SVOD market is flat and remains below European penetration average,
Media, Entertainment, and Sports driven by the less available services compared to European average and the strong
presencee of BVOD

Driven to tiers: Streaming

video services look to up
their profitability game SVOD penetration in Belgium recorded a churn AVOD and BVOD platforms

with viewers Belgium reached a plateau

in 2023
rate of 11% over the past
year, but 9% of former
have secured their place in
the Belgian household
subscribers re-subscribed
to certain services

47 46 70
38
34 52

18 31
16 15 24 23 23
12 19
10 10 14 14 16
6
1 1 1 2 3

2020 2021 2022 2023 2023 (all age groups) 2023 (18-34)

YouTube VRT Max RTL Play

Netflix Disney+ Apple TV+ Amazon
VTM Go RTBF Auvio

Graph: % of access to SVOD services in Belgium1 Graph: % of access to AVOD services in Belgium1

Sources: (1) Deloitte Digital Consumer Trends in Belgium 31


Media, Entertainment & Sports
Shuffle, subscribe,
stream: Consumer audio
market is expected to
amass listeners in 2024,
but revenues could
remain modest
Audio entertainment formats—including podcasts, streaming music, radio, and
audiobooks—are hitting high notes with consumers, but increasing profits remains
challenging for some providers.
Deloitte predicts that more
consumers worldwide will engage
Growth in the audio entertainment
market will be bolstered by factors
with audio entertainment overall
in 2024.
including cost, content, and convenience
-- along with consolidation and
innovation (like AI).
Annual revenues for these formats
are also on the rise, though modestly.
Despite strong reach and listening hours,
profit hasn’t always followed suit, which
Deloitte predicts the global audio
entertainment market will surpass
means monetization remains an open
opportunity across the audio
US$75 billion in revenue in 2024. entertainment market.
The global audio entertainment market is expected to surpass US$75 billion in annual
revenues in 2024
Audio medium
(estimated annual
revenues/listener)
Note: All figures are
projections.
Source: Deloitte analysis. 32
Cost, content, and convenience Why Does
expected to continue to influence It Matter?
consumer audio market growth
o Deloitte predicts 1.7 billion people globally will listen to podcasts in
an average month in 2024, driving global ad revenues to US$3.5
The audio entertainment
billion. Integration, stronger show content and innovation are all industry has a lucrative
likely contributors to growth in the podcast market.
opportunity to fill a gap in the
o Deloitte predicts 270 million people worldwide will listen to market and attract new
audiobooks in an average month in 2024, bringing audiobook
revenues to US$7 billion. Consolidation and generative AI capabilities
audiences – especially Gen Zs
both represent growth opportunities for the audiobook market. and Millennials who are most
likely to adopt and engage new
o Deloitte predicts 750 million people globally will subscribe to a
streaming music service monthly in 2024 and revenues will reach
tech, platforms, and services.
US$23 billion. Bundling, expanded subscription offerings, and
personalized experiences using AI may help retain and attract
audiences.

o Deloitte predicts that close to 4 billion people worldwide will listen to

radio monthly in 2024, keeping ad revenues relatively stable, at
US$42 billion. Radio’s low-cost and widespread accessibility help give
it staying power.

33
What should companies consider?

More audio platforms might consider consolidation

Bottom Line
and offering multiple audio formats—like music,
podcasts, audiobooks, and live events—in a single
application or platform.

Streamers and other audio providers might consider

There are myriad opportunities
investing in advancements in advertising technology for providers, content creators,
to make audio entertainment more “shoppable.”
and advertisers to enter and
innovate within the audio
industry to attract new audiences,
Content creators and providers—like movie and
television producers, book publishers, and game develop bespoke content, and
developers—may want to think about their audio spread brand awareness.
entertainment strategy early on to help extend IP and
keep dedicated fans engaged year-round.

Companies that have invested in podcasts to the tune of

billions of dollars may want to consider their time
horizons. The industry is growing, but not as quickly as
many hoped in terms of revenues. Some might decide
to exit in 2024.
34
 The rising appeal of (new) audio formats compels advertisers to tailor audio
Media, Entertainment & Sports channels based on their specific target group

Shuffle, subscribe,
stream: Consumer audio
market is expected to increase in podcast listeners
(2023). Penetration higher
of audio streamers do not
pay a subscription (2022).
listen to the radio (incl. FM
& DAB+) daily which

amass listeners in 2024,

in age groups 18-24 (39%) & Generally, individuals aged represents a 3% YoY
25-34 (35%). High-income 35 & above are less inclined increase. Penetration is
levels show greater interest to opt for paid subscriptions homogenous thereby
but revenues could (32%) than lower-income
individuals (14%)
positioning itself as the
mainstream audio channel

remain modest
BELGIAN AUDIO ADVERTISING SPENT EVOLUTION
BY AUDIO FORMAT (IN MILLION EUROS) Audio advertising spent has remained stable with a slow shift towards new audio formats

+17% Adjusted
370 for Belgian
420 inflation between
421 2020 &421
2023, audio advertising spent
446
remained stable overall
440 443
1,3% 1,5%
1,2%
3,4% 3,7% 4,1%

381 385 Despite increased popularity of other Audio formats, Radio effectively holds its
0,7% 0,9%
2,3% 2,9% 95,4% 94,9% 94,5% ground in the advertising spending market (~95%)
97,0% 96,2%
2020 2021 2022 2023 2024

Revenue Podcast Advertising

Podcasts are introducing/ growing advertising revenues to develop a sustainable
Revenue Music Streaming Advertising
business model. However current generated revenues are limited
Revenue Traditional Radio Advertising*

Source: Statista (2023)

(*) Digital Audio Broadcasting excluded from the calculations Source: Imec Digimeter (2022); Trustmedia (2023)
Notes: Imec Digimeter data, which focuses on Flanders, used as a proxy for the full Belgian territory 35

Media, Entertainment, and Sports
Will endless low-cost
content do to gaming
what it did to TV and
film?
UGC gaming platforms that incentivize user-generated content are expected to make big
payouts to creators in 2024. As this practice grows, however, it could put pressure on top-
tier games and services.
Two popular games enable users to
build and share interactive 3D content.
Expanding the creator economy for
games could drive greater innovation;
Now a third major gaming company
has launched new tools and incentives
stronger engagement; and more
favorable economics for platforms
for 3D UGC. and creators.
Deloitte predicts that in 2024 that 3D
UGC gaming platforms will pay out
Amplifying 3D UGC could create more
fragmentation of creators while
almost $1.5 billion to more than 10 consolidating them onto a handful of
million independent content creators. platforms, shifting the economics
towards user-generated games.
UGC gaming platforms will pay out almost $1.5 billion to more than 10 million independent
content creators
Independent content creators
Source: Deloitte analysis. 36
User generated content could Why Does
shift the economics of gaming It Matter?
o Developing stand-out story-driven games has become
very expensive and complex, and such games may
compete for engagement with top live game services.
Expanding the creator economy for
o 3D UGC platforms are democratizing game games could drive greater
development, enabling enable users to create, share,
and monetize games and digital goods. And with innovation in game experiences
advancing technologies they’re making it easier for and digital goods; stronger
anyone to develop compelling game experiences.
engagement for 3D UGC platforms;
o However, an explosion of low cost or free 3D user- and more favorable economics for
generated content could draw more people away from
top-tier games and game services and into simpler, both platforms and creators. But
more commoditized and niche games. by unleashing endless cheap 3D
o Just as user-generated content on social media has content, will they disrupt the
delivered an endless variety of video entertainment, entire industry?
even competing with TV and film for time, more social
3D UGC could become competitive with leading games
and game services.

37
What should companies consider?

Game studios may need to think hard about where

Bottom Line
they live on the spectrum between premium
experiences, live services, and niche and commodity
content.

3D UGC platforms should consider the overhead of
managing, moderating, and monetizing so much
content, as well as the challenges of copyright
infringement and harmful content.
Brands and advertisers should be exploring 3D UGC
platforms and creators and leveraging leading
practices and learnings from the social media
creator economy.
Amplifying 3D UGC could deepen
the gap between premium and
commodity gaming experiences,
consolidating creators onto a
handful of platforms and shifting
the economics of game
development and engagement.

Is there an overlap between social media creators,

liver streamers, and 3D UGC creators? Will the
creator economy expand to include 3D UGC as part
of their distribution and engagement models?

38
 As security concerns grow, the need for authentication will likely consolidate the
Telecom and Technology smartphone’s status as the ultimate goldilocks device: the right size, power, connectivity
and trust.

Smartphone Deloitte predicts that smartphones are

authentication: The killer
expected to be used to authenticate
The smartphone may also be used
increasingly to generate passkeys—likely
processes trillions of times in 2024 across
a widening range of actions: access to
the medium-term replacement for
passwords. The smartphone is also likely

app that can augment the websites, making payments, unlocking cars,
and controlling entry to physical buildings.
to play a growing role in authenticating
transactions, both online and in stores.

smartphone’s utility In 2023, there were an estimated 1.3 trillion The smartphone could be used
two factor authentication messages sent via increasingly to validate physical access
telecom networks, generating an estimated into buildings, vehicles and countries.
US$26 billion from network traffic alone.

The smartphone’s anticipated usage as an authenticator in 2024 is significant and also modest
relative to potential usage

39
The smartphone may become the Why Does
primary authenticator It Matter?
o In 2024 and over the coming decades, smartphones
could replicate and exceed the functionality of tens of
billions of physical authentication tools in use today, Given the widening future scope
including keys, passwords, driving licenses, passports,
credit cards, and cash.
of the smartphone, it is likely to
cement its position as a
o The addition of authentication to the smartphone’s successful device.
utility could be analogous to its assimilation of the
functionalities of multiple form factors, including This may dampen (but not
compact cameras, MP3 players, alarm clocks,
handheld GPS navigation, office desk phones, and
eradicate) discussions of when
tourist guidebooks. it might be toppled by another
form factor.
o Modern society often requires technologies such as
keys, passports and means of payment. However,
these tools do not always need to be physical – they
can exist as software capabilities within smartphones,
and can be better keys, passports and payment tools
as a result.

40
What should companies consider?

Bottom Line
Consider how smartphone’s biometric capabilities can
be integrated further into authentication workflows, for
a wide range of processes. All major OS now support
passkeys.

In the medium-term, smartphone

As well as online account access, consider how
smartphones can be used to complement office /
industrial building access, in addition to physical IDs.
Transport authorities should consider how smartphones
could be used in metro transport systems. Also, can
smartphone authentication complement / replace
physical national ID?
Vehicle vendors should contrast smartphone entry
for vehicles versus other keyless systems: are they
more challenging to disintermediate?
authentication could swell to tens of
trillions in a year with additional
applications including proving identity
becoming mainstream; in 2024, usage of
the smartphone’s authentication will still
likely be a fraction of its potential impact.
As society migrates to smartphone-based
authentication, it will be important to
help ensure that no users are left
stranded.

41
Telecom and Technology With Itsme, Belgium is a leader in the authentication software market

Smartphone of the population owns a

smartphone device in 2022, up
Transaction volumes on
itsme have increased by
authentication: The killer 2% from 2021 35%, indicating intensified
use

app that can augment the Of adult Belgians aged The monthly users of itsme
between 16 and 74 have an
smartphone’s utility itsme account
has sharply risen from 11%
in 2021 to 60% in Jan 2023

ITSME HAS CREATED AN ENTIRE ECOSYSTEM

GOVERNMENT AGENCIES TELECOMMUNICATION

BANKING INSURANCE
<

NON-EXHAUSTIVE OVERVIEW

ONLINE BETTING PLATFORMS HEALTHCARE

42
 In some parts of the world, some consumers may have all the bandwidth they need (and
Telecom and Technology then some) in 2024.

No bump to bit-rates for Deloitte predicts that in 2024, over 90%

of the most used online applications on
Recent shifts in technology and consumer
behavior suggest that this trend may be

digital apps in the near- fixed broadband networks in developed

markets will have the same vendor-
slowing or stopping. The digital
transformation of living rooms may be

term: Is a period of enough recommended bitrate as in 2023. complete in developed markets.

fixed broadband The demand for ever higher internet

speeds over fixed networks has been
> 80% of mainstream applications (video,
audio, calls, games) may see no increase to

connectivity approaching? a constant for most of the history of

the internet.
officially advised bitrate between 2023-25.
Over time, the bitrate for some applications
might reduce due to better compression.

Growth in average data usage per broadband home appears to be declining

Year-on-year change
in average fixed
broadband usage in
the UK, measured
in Gigabytes (%)

Source: Ofcom, 2023. 43

The most commonly used Internet Why Does
applications require 5Mbit/s or less It Matter?
o The most common recommended bitrate for HD video-on-
demand in 2024 will be 5 Mbit/s or lower. Over the last 12
years, required bitrates for streaming video on demand
have tended to decline as compression has improved and Historical growth in bandwidth
content is reencoded. demand, however, may no longer be a
o The median streaming speed for music will be about 300 reliable indicator of future demand.
kbit/s for a service that is marketed as high quality. When considering bandwidth demand
Consumers may typically not perceive higher fidelity.
per household, trends in the
o The most popular games are likely to require in the region composition of homes should be
of 5-10 Mbit/s for online play, with the game content having
been downloaded previously. noted. In developed markets,
household size is generally in long-
o For video calls, most services require 4 Mbit/s for group
video calls and less for one-to-one calls. term decline.
o Smart home devices are likely to require under 5 Mbit/s
per device.

44
What should companies consider?
In some geographies, telcos may benefit from focusing
less on outright speed and more on other attributes,
including reliability.
If aggregate required bitrates are slowing down, this may
also mean that other network technologies including 5G
or 4G fixed wireless access (FWA) may be more viable.
There are also considerations on the positioning of speed
tiers: Offering 200 Mbit/s as an entry level tier may
encourage more subscribers to opt for the lowest and
cheapest tier.
There are likely to be impacts on capex plans: what are
the implications of lower capex in the medium term on
fixed capital formation?
Bottom Line
The era of enough connectivity may
be here.
Shifts tend to be finite. Some can take
decades to complete; others may take
years.
In recent years, adoption of video-on-
demand has slowed; and, in the absence
of any new applications or devices that
could require significantly more
bandwidth, household demand for
bandwidth might be reaching its
natural ceiling, at about 100 Mbit/s.
45
 Belgium is leading the European pack in terms of high-speed fixed connectivity
Telecom and Technology access, while most Belgian consumers are not aware of their download speed

No bump to bit-rates for

digital apps in the near-
term: Is a period of enough
fixed broadband
connectivity approaching?
97% coverage rate of
Belgium for fixed
speeds of ≥ 30 Mbps
The demand for ≥ 30 Mbps 65% of Belgians are not
connectivity has been
stagnating, reflecting the
aware of its household’s
broadband speed
widespread connectivity

Fixed broadband subscriptions ≥ 30mbps (in % of households)

97 96
84
79 77
69
64

BE NL LUX EST GER AU FR

Source: Digital Decade DESI, europea.eu, 2023

46
 More data, increased cybersecurity threats, and geopolitical tensions are expected to
Generative AI increase demand for cloud solutions that can operate locally.

Keeping it local: Cloud Cloud is fundamental. Analysts expect

sovereignty is a major
it to generate US$600 billion in 2023,
Government cloud should surpass
US$41 billion in 2024, up 16%. This is
creating digital transformation, better
service delivery, workforce mobility,
just one form of sovereign cloud
product that exists, and is tailored for

focus of the future and new frontiers in analytics and AI. compliance needs of govt agencies.

In 2024, Deloitte predicts that the Distributed cloud, another solution which
national focus on cloud sovereignty can be used to comply with data residency
will intensify in all developed markets. restrictions, should reach US$7 billion in
2024. It was US$4 billion in 2022.

Cloud sovereignty is the principal that data stored in the cloud should be subject to the
laws of the country in which it physically resides
As the volume, value and sensitivity of data stored has surged, this has become a major
focus for policymakers

$41
billion
$7
Government Cloud
billion
Distributed Cloud

Note: All figures are

projections for 2024.
47
Source: Deloitte analysis.
Data sovereignty is a moving Why Does
tapestry of regulation… It Matter?
o Sovereignty regulations have seen frequent amendments,
and occasional contradictions, driven by concerns over
the rising value of personal data, geopolitics, and evolving
cybersecurity threats. Cloud was founded on the idea that the
location of data does not really matter.
o In recent years, companies may have developed complex Its promise was to combine the world’s
hybrid- and multi-cloud environments. Data can be
dispersed across facilities and jurisdictions, making data into big facilities and benefit from
management and governance much more intricate. economies of scale. Location, it turns
out, does matter. Data has immense
o It is not just about the location of the data, but also
location of the operator. International cloud service value, so nations are jousting with
providers are now working with local operators to comply international companies, and each other,
with sovereignty requirements.
to ensure their interests and that of
o Sovereign cloud solutions may come with drawbacks their citizens are protected.
compared with pure public cloud, such as added cost and
complexity, limited services and scalability, and potential
for issues with vendor lock-in and performance.

48
What should companies consider?

Conduct a comprehensive data audit. This should

include identifying data sources, and classifying data
based on sensitivity. It should also include a review of
data storage and transfer policies, and ensuring data Bottom Line
is encrypted at rest, and in transit.

Consider a data residency strategy if they don’t have
one. This involves deciding where data will reside
based on performance needs (like latency) and
regulatory requirements.
Best practice would also involve investing to
understand local regulations, engaging local experts,
and training staff across multiple departments (e.g., IT,
legal, operational), as regulations evolve.
Getting data sovereignty right
involves agility and resilience. It
includes adapting to regulatory
changes as they happen. Success
could mean instilling greater
customer confidence, reducing the
risk of legal repercussions, and
securing a company’s data assets.

Extend this rigour to their supply chains. They

should understand where suppliers store and
process data, and have an ‘exit’ strategy in case of
data repatriation from cloud to a local server.

49
 Cloud services are widely adopted by Belgian companies of different maturity level
Telecom & Technology (in %)

Keeping it local: Cloud 88

67
sovereignty is a major 49

focus of the future

Small companies Medium-sized companies Large companies
(< 50 FTEs) (50 - 500 FTEs) (+ 500 FTEs)

Purchases Cloud Services

LARGE-SCALE CLOUD ADOPTION & EU GDPR Regulation pushes cloud service providers to offer sovereign cloud solutions
RESTRICTIONS HAS ATTRACTED +4 BILLION EURO FDI
FROM US GIANTS
PARTNERSHIP ANNOUNCED PARTNERSHIP ANNOUNCED LAUNCHED DIRECT GO-TO-
IN JULY 2022 IN MARCH 2023 MARKET IN JUNE 2023

Currently building 3
5 datacenters currently -
datacenters to enable
Announced plans for a 6th
“confidential computing”

+ € 3 billion investment + € 1 billion investment

Source: De Tijd Sources: Datanews (2023); ITDaily (2023); Proximus (2023) ; Oracle (2023)
50
About Deloitte
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