TMT 2013

Deloitte’s Technology, Media & Telecommunications (TMT) Predictions always make for an entertaining read. The 2013 edition is being released today with Duncan Stewart, Deloitte Canada’s Director of Research, leading a 14 city roadshow with the presentation of their global research, leading into a discussion of how these trends will impact the Canadian marketplace.

Among some of the highlights I found interesting:

• While there is lots of talk about cable TV cord-cutters, Deloitte believes that 99% of subscribers to pay TV services will continue to subscribe at year end 2013;
• Nearly a quarter of the world’s smartphones will never connect to the internet. As a result, ad revenues per device get dragged down by the smartphone users who use their devices more like feature phones;
• Despite the growth in the number of internet connected tablets and smartphones, Deloitte predicts 80% of internet traffic will continue to be from PCs;
• More than 70% of our time on computing devices will be spent with a PC;
• About two billion people, or one third of the global population, are online, but that third is skewed toward developed markets and more affluent people.

The report predicts that crowdfunding will continue to grow in 2013, doubling to $3B. But there is a cautionary note as well:

If regulations around equity crowdfunding are relaxed, there are likely to be increased risks — and not just for investors. While crowdfunding may open the floodgates, capital will largely flow to inexperienced inventors and project managers. Crowdfunded projects have a history of unanticipated delays as inexperienced teams struggle with project deadlines and manufacturing details. To date, some research suggests that crowdfunded opportunities are a bigger risk than traditional IPOs, and that the potential for the average investor to misunderstand or misinterpret the promises of an early-stage startup are higher than for an experienced accredited investor.

Be sure to get a hold of Deloitte’s 2013 edition of the TMT 2013 Predictions.

There is plenty food for thought and discussion over coffee.