Toronto, January 15, 2007 — According to a Deloitte study released today, challenges and opportunities abound for the technology, media and telecommunications (TMT) landscape in 2007. Power will shift to consumers from content providers and manufacturers, forcing TMT companies to adapt their product offerings to meet customer expectations.
The 2007 edition of Deloitte's Technology, Media and Telecommunications Predictions identifies the hot-button issues for the near future, and also explains the business implications associated with these issues. The predictions are based on input from more than 5,000 Deloitte TMT practitioners and clients as well as external analysts from around the world.
"The entire TMT industry is focusing more on giving people the power to enjoy and consume what they want, when they want, and how they want it," said John Ruffolo, National leader, TMT, Deloitte. "New trends are expected to create new product categories, new markets, and in some cases even change the structure of existing industries."
Here are the top 10 trends for Canada identified in the three-part series of Deloitte's predictions:
- Technology goes green — As environmental concerns increase, tech companies will likely need to build a case for technology's positive contribution to the global environment by designing products and services that are environmentally friendly.
- The business case for biometrics — In 2007, biometric-based security, whereby a physical characteristic of the individual is used as the key, may well be used to provide additional layers of security. Biometrics could be employed in a larger range of applications, driven by falling prices, the rising performance of key technologies such as processors and digital storage, and a growing public willingness to pay more for biometric security.
- Parasitic power to the people — Over $31 billion is spent every year on disposable dry-cell batteries; $6 billion is spent on rechargeable batteries; and over a billion rechargeable batteries are included with the sale of electronic devices. One of the most interesting techniques to combat this waste is power-scavenging, which use devices able to generate energy from a variety of sources in their immediate environment including sunlight, changes in temperature, vibration, motion, sounds and pressure.
- Analogue apples and digital oranges — Tapping into new media's potential will continue in 2007 but should only be done when using directly comparable statistics. Balanced, comparable statistics that clearly show the relative performance of all types of media, both old and new, should ensure that investors' expectations are properly managed, that advertisers' budgets appropriately allocated, and that acquisitions are accurately priced.
- Virtuanomics — Real economies are emerging within digital online fantasy worlds. Virtual fantasy worlds have become a serious business in their own right, attracting the interests of advertisers and media companies. However, a sense of perspective is required. The total available market for such fantasy games may be limited. The value of this trade may, based on recent growth, become large enough to also attract the attention of tax authorities.
- Making digital user-generated content useful — Digital user-generated content has been cast as the eventual conqueror of the established media world. However, in 2007 the majority of user-generated content is likely to continue and remain of interest to specific audiences. Nonetheless, some digital user-generated content is likely to play a role in the professional media world. Media companies would well find that the online channels that serve up user generated content could become not only a powerful new promotional vehicle, but also an efficient and effective medium for scouting new talent.
- Profiting from participation in television — Millions of viewers participate in television programs, directly influencing the outcomes of popular shows. This trend is likely to continue through 2007. Use of participation is being driven by technological advances, in the forms of rising broadband penetration, ubiquitous ownership of mobile phones and the availability of platforms capable of handling thousands of simultaneous calls and text messages. In 2007, the key forms of participation will generate increasing revenues.
- Net neutrality — The debate around net neutrality is likely to become increasingly vocal and global in 2007. At issue is whether additional government regulation is necessary to protect the vibrancy and potential of the Internet. Something has to change in the economics of Internet access, such that network operators and ISPs can continue to invest in new infrastructure and maintain service quality, and consumers can continue to enjoy the Internet as they know it today.
- Long live mobile video (just forget television) — Companies have invested significant sums in developing mobile television services so far, but mobile television has had muted commercial impact. Its disappointing performance is likely to continue in 2007. A key reason for this will be weak consumer demand. Canadians do not yet watch TV on their telephone, so the adoption of technologically feasible products will be much slower in Canada.
- It's mobile, but not as we know it — During 2007, mobile is likely to consolidate its position as the primary network for voice calls. As a result, many of the fixed-voice services used in homes and offices are expected to decline. In 2007 many operators will need to fundamentally change their strategies to address this-including providing reliable in-building service, and build greater urban capacity to cope with growing call volumes.
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About the study
The 2007 edition of Deloitte's Technology, Media and Telecommunications (TMT) Predictions is based on comprehensive research and input from more than 5,000 Deloitte TMT partners, directors and senior managers, as well as discussions with firm clients and leading industry and financial analysts around the world. Also, for the first time this year, interviews were conducted with 36 leading executives from around the world on the key industry theme of convergence.
Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 6,800 people in 51 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu.
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