During 2023, the movement of live sports from broadcasting to streaming services is expected to gain momentum. Meanwhile, chipmakers are expected to spend over $300 million on AI tools. A prerequisite for the rapid development is that more than 5,000 broadband satellites are launched during the year. This is shown by Deloitte’s TMT Predictions 2023, which analyzes how the latest in technology, media and telecom (TMT) affects consumers and businesses.
– The TMT industry continues to develop at an impressive pace to meet our needs and expectations in an increasingly digital and connected everyday life. In 2023, we foresee rapid progress and implementation of a range of technologies to help businesses and consumers do more with less, says Jonas Malmlund, partner at Deloitte.
Streaming services compete for live sports
Streaming services are increasingly spending on rights to broadcast live sports in an effort to attract, retain and monetize a broad audience. By 2023, Deloitte predicts that providers worldwide will spend over $6 billion on exclusive live sports rights. To put that into perspective, the combined content spend from all providers in 2021 was around $50 billion.
– The increased spending shows a mutual dependence between streaming services and the biggest sports leagues. Competition between streaming services is increasing and live sports are seen as a safe bet to attract and retain viewers. At the same time, media rights constitute an important source of income for the sports leagues, together with ticket sales and sponsorship, says Jonas Malmlund.
Semiconductor companies turn to AI and high-efficiency materials
Chip companies are increasingly using AI to design and manufacture chips faster, cheaper and more efficiently. Deloitte predicts that the world’s leading semiconductor companies will spend upwards of $300 million on AI tools in 2023. That number is also expected to grow by 20 percent annually over the next four years and exceed $500 million by 2026.
– AI tools enable chipmakers to save time and money, alleviate talent shortages and update legacy designs. They can also increase security in the supply chain and help alleviate the next chip shortage, says Jonas Malmlund.
Silicon has long been the standard for making chips for phones and computers, but is not suitable for high-voltage and high-power applications such as battery-powered electric vehicles, super-efficient chargers for consumer electronics and solar panels. As these become more common, Deloitte predicts that semiconductors made from high-efficiency materials – mainly gallium nitride and silicon carbide – will sell for $3.3 billion in 2023, up nearly 40 percent from 2022.
Increase in the number of broadband satellites
Unlike fiber and mobile networks, satellites can provide broadband coverage over large geographical areas without operators needing to establish infrastructure on the ground. As the demand for high-speed Internet in all corners of the world increases, Deloitte predicts that more than 5,000 broadband satellites will orbit the Earth in low orbit (LEO) by the end of 2023. These are expected to form two constellations providing high-speed Internet to nearly one million subscribers.
If all the organizations currently planning to build a LEO constellation succeed, seven to ten competing networks could be in operation by 2030, with a total of 40,000 to 50,000 satellites in orbit.
– The increase in the number of satellites is good news for users, as it will probably lead to lower prices, better coverage and more reliable internet. On the other hand, there are risks with an increasingly crowded orbital environment – the risk of collisions increases, which requires more cooperation and coordination, says Jonas Malmlund.
