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1、ACTIVATE TECHNOLOGY&MEDIA OUTLOOK 2021 Continued 12 Takeaways from the Activate Technology&Media Outlook 2021Time and Attention:The entire growth curve for consumer time spent with technology and media has shifted upwards and will be sustained at a higher level than ever before,opening up new opport

2、unities.Video Games:Gaming is the new technology paradigm as most digital activities(e.g.search,social,shopping,live events)will increasingly take place inside of gaming.All of the major technology platforms will expand their presence in the gaming stack,leading to a new wave of mergers and technolo

3、gy investments.AR/VR:Augmented reality and virtual reality are on the verge of widespread adoption as headset sales take off and use cases expand beyond gaming into other consumer digital activities and enterprise functionality.Video:By 2024,nearly all American households will have a Connected TV.Th

4、e average paid video streaming subscriber will own 5.7 subscriptions,while also watching other services for free(e.g.sharing passwords,using advertising-supported services,viewing social video).eCommerce:The growth curve of eCommerce has accelerated by 5 years in 5 months.Consumers will expand their

5、 digital shopping destinations beyond the retailers that they bought from before shelter-in-place.Marketplace platforms and the shift to online grocery buying will level the eCommerce playing field for large traditional retailers and brands.Esports:During shelter-in-place,esports were sports for man

6、y consumers;going forward,esports will be a major global catalyst for interest in interactive gaming,technology,and entertainment 12 Takeaways from the Activate Technology&Media Outlook 2021Sports Tech and Sports:New technologies will reshape every aspect of sports,including data,athlete performance

7、,and viewing experiences.If the broadcast rights are maintained,sports fans will create a floor for Pay TV households and a ceiling for cord cutting.Sports Betting:By 2024,we forecast$24B in sports betting revenues for technology and media companies,enabled by state legalization as well as advanced

8、sports viewing experiences and functionality.Super Users:To drive growth,technology and media companies will need to focus their efforts on super-serving the 23%of all users who account for the overwhelming majority of time and money spent on eCommerce,video,gaming,virtual reality,and music.Connecti

9、vity:A large percentage of consumers will upgrade to 5G mobile devices and higher bandwidth speeds,as they dramatically expand their use of digital technologies such as telemedicine,video conferencing,video streaming,digital fitness,and cloud gaming.Advertising:For marketers and media and technology

10、 companies,the elimination of third-party cookies by the end of 2021 will create the critical need for entirely new ways of identifying consumers and personalizing their advertising experience.Growth Dollars:Between 2020 and 2024,technology and media companies will add over$374B in revenue growth do

11、llars.Its going to be an exciting couple of years!CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight

12、 for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising

13、:Technologys Identity Crisis133PAGE CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battlegro

14、und Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys I

15、dentity Crisis133PAGEACTIVATE FORECAST2020E2024EWe forecast significant growth ahead:on a global basis,internet and media businesses will add almost$375B in growth dollars 5INTERNET AND MEDIA REVENUES1,GLOBAL,2020E VS.2024E,USD1.“Internet and media revenues”include radio,recorded music,magazine publ

16、ishing,newspaper publishing,video games,filmed entertainment,book publishing,TV subscription and licensing fees,internet access,digital advertising,and traditional advertising on these platforms.Sources:Activate analysis,eMarketer,GroupM,PricewaterhouseCoopers,ZenithOptimedia Group$1.9T$2.3T$374BGRO

17、WTH DOLLARS2020E2024E CAGR:4.5%CONSUMER SPEND2020E2024E223.3%212.3%193.6%Ad revenueCost of internet access3Paid content2 6ROBOTO BOLD 16PT,ROBOTO REGULAR 16 PT1.“Internet and media revenues”include radio,recorded music,magazine publishing,newspaper publishing,video games,filmed entertainment,book pu

18、blishing,TV subscription and licensing fees,internet access,digital advertising,and traditional advertising on these platforms.2.“Paid content”includes music,magazine publishing,book publishing,newspapers,video games,television,and filmed entertainment.3.“Cost of internet access”includes fixed broad

19、band,wireless,and mobile internet access.Sources:Activate analysis,eMarketer,GroupM,PricewaterhouseCoopers,ZenithOptimedia Group35%36%29%32%35%33%$1.9T$187B$110B$77B$2.3TINTERNET AND MEDIA REVENUE1 GROWTH BY SEGMENT,GLOBAL,2020E VS.2024E,USDCAGR:2.8%CAGR:3.7%CAGR:7.4%Driving half of the total growth

20、2020E-2024E CAGR:Recovering from the COVID-19 dip in 2020,growth in advertising will far outpace internet access and paid contentCONSUMER SPENDACTIVATE FORECAST2020E2024ESubscription revenueSingle transactionsIn terms of consumer spending,subscriptions will add$141B in growth dollars and single tran

21、sactions will add$46B 7ROBOTO BOLD 16PT,ROBOTO REGULAR 16 PT1.“Consumer internet and media revenues”include radio,recorded music,magazine publishing,newspaper publishing,video games,filmed entertainment,book publishing,TV subscription and licensing fees,and internet access.Sources:Activate analysis,

22、eMarketer,GroupM,Newzoo,Omdia,PricewaterhouseCoopers,ZenithOptimedia GroupCONSUMER INTERNET AND MEDIA REVENUE1 GROWTH BY REVENUE MODEL,GLOBAL,2020E VS.2024E,USD23%77%23%77%$1.4T$141B$46B$1.6TCAGR:3.4%CAGR:3.2%2020E-2024E CAGR:CONSUMER SPENDACTIVATE FORECAST CONTENTS$375 Billion Global Technology and

23、 Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intens

24、ifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis133PAGEActivates analysis of technology and media activity shows

25、 that multitasking led to a 31.5-hour day for the average American in 2019,roughly 12.5 of which were spent using technology and media 9CONSUMER ATTENTION1.Behaviors averaged over 7 days.Figures do not sum due to rounding.2.“Other”includes media activities outside of the listed categories,such as br

26、owsing websites,reading,and attending live events.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),CareerBuilder,Edison Research,eMarketer,Gallup,Music Business Association,National Sleep Foundation,Nielsen,PricewaterhouseCoopers,U.S.Bureau of Labor Statistics,YouG

27、ov6:30 SLEEP7:10 OTHER NON-WORK ACTIVITIES cooking&housework,personal&household care,leisure,fitness,community&other activities,eating&drinking5:29 WORK&WORK-RELATED6:3012:24 CONSUMER INTERNET AND MEDIA ACTIVITY7:105:291:372:355:051:091:5931:33 Average Day Length per AdultMESSAGING&SOCIAL MEDIAOTHER

28、2VIDEOAUDIOGAMING AVERAGE DAY BY ACTIVITY PER ADULT AGED 18+1,U.S.,2019,HOURS:MINUTESAt 41%on average,video captures the largest share of the daily 12.5 hours spent with technology and media 10 AVERAGE DAILY INTERNET AND MEDIA ATTENTION PER ADULT AGED 18+1,U.S.,2019,15-MINUTE INTERVALS1.Behaviors av

29、eraged over 7 days.2.“Other”includes media activities outside of the listed categories,such as browsing websites,reading,and attending live events.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Music Business Association,Nielsen,PricewaterhouseCoopersA

30、TYPICAL 12:13-HOUR MEDIA DAY:48 X 15-MINUTE INTERVALSAN AVERAGE 12.5-HOUR INTERNET AND MEDIA DAY IN 15-MINUTE INTERVALSAUDIOGAMINGMESSAGING&SOCIAL MEDIAVIDEOOTHER2CONSUMER ATTENTION2017201820192020ETime spent with technology and media jumped after the COVID-19 outbreak shifting the growth curve upwa

31、rds for these industries 11AVERAGE DAILY INTERNET AND MEDIA ATTENTION PER ADULT AGED 18+1,U.S.,2017-2020E,HOURS:MINUTES1.Behaviors averaged over 7 days.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Music Business Association,Nielsen,PricewaterhouseCoop

32、ers 1112:0212:1612:2413:131.9%1.2%6.5%COVID-19 outbreak impacting 2020 consumptionYoY Change:CONSUMER ATTENTIONACTIVATE FORECAST2020E2024EGaming will lead the growth in time spent with technology and media over the next 4 years 12AVERAGE DAILY INTERNET AND MEDIA ATTENTION PER ADULT AGED 18+1,U.S.,20

33、20E VS.2024E,HOURS:MINUTES1.Behaviors averaged over 7 days.2.“Other”includes media activities outside of the listed categories,such as browsing websites,reading,and attending live events.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Music Business Asso

34、ciation,Nielsen,PricewaterhouseCoopers13:1313:205:292:431:441:191:585:142:531:591:191:55TOTAL TIME2020E-2024E CAGR:0.2%VIDEOMESSAGING&SOCIAL MEDIAGAMINGOTHER2AUDIO-0.6%0.1%3.4%1.5%-1.2%CONSUMER ATTENTIONACTIVATE FORECASTOn average,time spent with most major social platforms has increased and TikToks

35、 level of engagement is reaching parity with that of Facebook 13AVERAGE MONTHLY TIME SPENT PER USER1 ON DESKTOP,MOBILE WEB,AND APP BY SOCIAL PLATFORM,U.S.,2018-YTD AUG.2020,HOURS:MINUTES1.Desktop users aged 2+and mobile(i.e.smartphone,tablet)users aged 13+.2.Prior year data is not available due to u

36、pdated Comscore methodology.Sources:Activate analysis,Comscore20182019YTD AUG.20209:555:121:341:090:409:145:3915:282018YTD AUG.2020%GROWTH:+2%10:504:190:560:590:2915:08+19%N/A2-9%+8%+78%+38%N/A2CONSUMER ATTENTION CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer T

37、echnology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelera

38、ting Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis133PAGEWe have identified these consumers Super Users who account for a disproportionately high share of time

39、 and spend across all activities,including video,gaming,music,podcasts,messaging and social media,virtual reality,and eCommerceTo drive growth,technology and media companies need to identify,reach,and super-serve Super Users a single group of power users whose time and spend far exceed those of othe

40、r users 15SUPER USERSSource:Activate analysisIt is more critical than ever for technology and media companies to understand and reach their most valuable consumers those who engage more with media and are willing to pay for the content and services that meet their needsTo best reach Super Users and

41、capture their time and spend,technology and media companies will need to create personalized offerings that cater to their broad set of interestsMaking up less than 25%of all users,Super Users account for a much higher share of consumption and spend across technology,media,and eCommerce activities 1

42、6SUPER USERS1.Includes time spent watching video,playing video games,listening to music,listening to podcasts,and using messaging/social media services.2.Includes money spent on all videos and video services,including traditional/virtual Pay TV,video streaming services,and from video stores/rental s

43、ervices;money spent on video games and other video gaming purchases(e.g.in-app purchases)across all devices;and money spent on music,music services,podcasts,and podcast services(excluding donations).Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)as much on eCommer

44、ce purchases as all other users 5.0XSuper Users spendECOMMERCE DOLLAR SPENDas much time consuming media1 as all other usersMEDIA TIME SPEND1.4XSuper Users spendas much on media purchases2 as all other users3.6XMEDIA DOLLAR SPENDSuper Users spendSuper Users spend more time with technology and media t

45、han all other users,with their average day including 4 additional hours of consumption 17AVERAGE DAILY TIME SPENT WITH MEDIA PER USER1,U.S.,2020,%ADULTS AGED 18+/HOURS PER DAYSUPER USERS1.Includes time spent watching video,playing video games,listening to music,listening to podcasts,and using messag

46、ing/social media services.Does not account for multitasking.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Music Business Association,Nielsen,PricewaterhouseCoopers77%23%SUPER USERSALL OTHER USERSUser Population10.3 TOTAL HOURS14.6 TOTAL HOURSSUPER USER

47、S:14.6 TOTAL HOURS2ALL OTHER USERS:10.3 TOTAL HOURS2Super Users spend more time with all major technology and media activities video,gaming,music,podcasts,and messaging/social media 18AVERAGE DAILY TIME PER USER BY MEDIA TYPE1,U.S.,2020,HOURS PER DAYSUPER USERS1.Figures do not sum due to rounding.2.

48、“Total hours”do not account for multitasking.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Music Business Association,Nielsen,PricewaterhouseCoopers5.72.52.62.11.8HOURSHOURSHOURSHOURSHOURS5.41.51.61.20.5HOURSHOURSHOURSHOURSHOURSVIDEOGAMINGMUSICPODCASTS

49、MESSAGING&SOCIAL MEDIA 1.Includes money spent on all videos and video services,including traditional/virtual Pay TV,video streaming services,and from video stores/rental services.2.Includes money spent on video games and other video gaming purchases(e.g.in-app purchases)across all devices.3.Includes

50、 money spent on music,music services,podcasts,and podcast services(excluding donations).Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),Newzoo,PricewaterhouseCoopers,Statista,U.S.Census BureauNot only do Super Users spend more time with technology and media,they a

51、lso spend more money 19MONTHLY DOLLAR SPEND BY MEDIA TYPE,U.S.,2020,%ADULTS AGED 18+/%TOTAL SPEND BY MEDIA TYPE/USD PER USERSUPER USERS77%23%SUPER USERSALL OTHER USERSUser PopulationTotal Video Spend1Total Gaming Spend2Total Music&Podcast Spend3$26/USER$68/SUPER USER$1/USER$15/SUPER USER$4/USER$29/S

52、UPER USER24%76%33%67%56%44%Super Users technology and media behavior extends to eCommerce,in which they account for the bulk of total spend 20SUPER USERSSources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)User PopulationTotal eCommerce Spend77%23%41%59%SUPER USERSALL O

53、THER USERSECOMMERCE SPEND,U.S.,2020,%ADULTS AGED 18+/%TOTAL ECOMMERCE SPENDSuper Users tend to be younger and more affluent than their counterparts,making them more valuable to technology and media companiesSuper Users are highly educated,with most holding a college degree and many still enrolled as

54、 full-time students in a higher education institutionSuper Users are younger and more affluent,with a higher level of education than all other users 21USER DEMOGRAPHICS,U.S.,2020,%ADULTS AGED 18+SUPER USERSARE AGED 18-34HOLD A BACHELORS DEGREE OR HIGHERSuper Users22%44%All Other Users9%37%36%70%17%6

55、0%HAVE A HOUSEHOLD INCOME OF$100K OR GREATERARE ENROLLED AS A FULL-TIME STUDENT IN A HIGHER EDUCATION INSTITUTIONSources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)YOUNG AND AFFLUENTEDUCATEDNearly all Super Users have a mobile data plan,and most have unlimited data,al

56、lowing them to consume as much content as they want on their mobile devicesSuper Users are highly connected,with most having access to unlimited mobile data 22MOBILE DATA PLAN ACCESS,U.S.,2020,%ADULTS AGED 18+SUPER USERSHAVE A MOBILE DATA PLAN83%96%54%77%HAVE AN UNLIMITED MOBILE DATA PLANSources:Act

57、ivate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)CONNECTEDSuper UsersAll Other UsersSuper Users are searching for a more unified consumption experience that can accommodate the higher number of streaming services they use 23SUPER USERS1.Includes video streaming services,video

58、game subscriptions,cloud gaming services,music streaming services,and podcast services.Figures do not sum to 100%due to rounding.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)NUMBER OF DIGITAL MEDIA SERVICES USED PER USER1,U.S.,2020,%ADULTS AGED 18+MOST IMPORTANT

59、 FEATURES WHEN USING MULTIPLE DIGITAL MEDIA SERVICES,U.S.,2020,%ADULTS AGED 18+Fewer than 55 to 910 to 1415 or more5%6%24%64%62%10%13%16%Watching/listening to/playing all services in a single placeBrowsing/searching a single libraryTracking and managing all services through a single accountReceiving

60、 personalized recommendationsPaying for all services through a single billAccessing all services through a single login name/password31%34%25%34%38%34%49%56%58%59%60%62%Super Users place more importance on features and capabilities that create a seamless and personalized experienceNUMBER OF SERVICES

61、 USEDSuper UsersAll Other UsersSuper UsersAll Other UsersSuper Users are turning to immersive media,such as virtual reality,as a substitute for live events and other social experiences 24SUPER USERSVIRTUAL REALITY USAGE,U.S.,2020,%ADULTS AGED 18+Video gamesSocial interactionsLive event streaming Ent

62、ertainment videos/documentariesVirtual tours or travelJob training/job-related activitiesTherapeutic activitiesEducational purposesShopping11%14%10%13%23%17%18%19%45%32%32%32%33%34%36%37%41%63%Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)29%Use at least weekly57

63、%Have never used14%Use monthly or lessSUPER USERSALL OTHER USERSAVERAGE WEEKLY TIME:2.1 HOURSAVERAGE WEEKLY TIME:0.2 HOURS3%Use at least weekly83%Have never used14%Use monthly or lessREASONS FOR PURCHASING A VIRTUAL REALITY HEADSET,U.S.,2020,%VIRTUAL REALITY HEADSET PURCHASERS AGED 18+Super UsersAll

64、 Other Users22%22%25%26%35%46%42%44%49%49%53%58%LIVE ESPORTS EVENTSLIVE COLLEGE SPORTING EVENTSCOMEDY SHOWSLIVE PROFESSIONAL SPORTING EVENTSTHEATER PERFORMANCESCONCERTS OR MUSIC FESTIVALSAVERAGE NUMBER OF LIVE EVENTS1 ATTENDED IN 2019 AMONG EVENT ATTENDEES BY TYPE Super Users will lead the charge ba

65、ck to live events when they fully return 25INTENT TO ATTEND MORE LIVE EVENTS1 AFTER THE COVID-19 OUTBREAK2 THAN IN 2019 AMONG EVENT ATTENDEES,U.S.,2020,%2019 LIVE EVENT ATTENDEES AGED 18+BY EVENT TYPESUPER USERS1.Refers to live events in large venues(e.g.theaters,stadiums,festival grounds).2.“After

66、the COVID-19 outbreak”refers to the 12-month period after the end of the COVID-19 outbreak and subsequent social distancing measures.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)1.34.51.64.21.43.41.63.41.74.11.73.2Super UsersAll Other UsersSuper Users are also d

67、efined by their high level of live event attendance prior to the COVID-19 outbreak 26SUPER USERSNUMBER OF LIVE EVENTS1 ATTENDED PER USER,U.S.,2019,%ADULTS AGED 18+45%20%12%23%No Live Events1-3 Live Events4-8 Live Events9+Live EventsSUPER USERSLIVE EVENT1 ATTENDANCE BY EVENT TYPE,U.S.,2019,%SUPER USE

68、RS91%Live Professional Sporting Events89%Concerts or Music Festivals85%Theater Performances84%Live College Sporting Events81%Comedy Shows75%Live Esports Events1.Refers to live events in large venues(e.g.theaters,stadiums,festival grounds).Sources:Activate analysis,Activate 2020 Consumer Tech&Media R

69、esearch Study(n=4,003)12%31%13%19%22%34%53%17%It will be essential for technology and media businesses to capture more of these Super Users in order to reach them,companies will need to deploy a highly personalized approach that caters to their interests 27SUPER USERS1.Figures do not sum to 100%due

70、to rounding.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketerSuper Users are exposed to more ads than their counterparts to effectively target Super Users,advertisers must serve them personalized ads based on their individual N/A USE AN AD BLOCKERPREFER NO

71、N-PERSONALIZED ADSNO PREFERENCEPREFER PERSONALIZED ADSPREFERENCE FOR AD PERSONALIZATION1,U.S.,2020,%ADULTS AGED 18+SUPER USERSALL OTHER USERS CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gam

72、ing:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the

73、Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis133PAGE20162020E2024E$103B$74B$43B$50B$36B$28B$45B$36B$30BWe project sustained growth for the video game industry across all major platforms 29CONSUMER VIDEO GAME REVENUE BY PLATFO

74、RM1,GLOBAL,2016 VS.2020E VS.2024E,BILLIONS USD1.Excludes hardware and device sales,augmented reality/virtual reality,and advertising.Figures do not sum due to rounding.2.2016 values are revised from previous estimates based on an updated methodology.Sources:Activate analysis,Newzoo,PricewaterhouseCo

75、opers$101B$145BSurge of multi-platform and mobile gamingWAVE 1:9%9%6%Console$198B14%5%5%2016-2020E CAGR:2020E-2024E CAGR:MobilePC/Mac2Rise of social gaming,gaming subscriptions,and cloud gaming servicesWAVE 2:2020E values are increased from prior estimates due to the rise in video gaming during the

76、COVID-19 outbreak9%8%GAMINGACTIVATE FORECASTGaming is the new technology paradigm,fundamentally reshaping the order and power structure in technology 30GAMINGSource:Activate analysisGamings importance will be significantly larger than its already outsized financial weightSimilar to previous waves of

77、 digital technology(e.g.search,social,eCommerce,mobile,apps,messaging),gaming will fundamentally change how people interact with each other and the internet overallMost digital activities(e.g.search,social,shopping,live events)will increasingly take place inside of gamesThe battle for gaming will in

78、tensify between the major technology platforms,leading to a new wave of mergers and technology investmentsVideo games are creating a virtual shared space where all digital activities will take place 31Source:Activate analysisGAMINGMusicEventsSocialGamblingDatingLearningShoppingFashionNewsMessagingSp

79、ortsVideo-conferencingSexSearchBankingBrowsingVideoTheme parksDigital activities inside of gamesGaming is becoming the central hub for peoples virtual lives,and increasingly their real lives 32Sources:Activate analysis,Company sites,The Daily Californian,Esports Insider,iRacing,SlashGear,South China

80、 Morning Post,The Verge,WHYYGAMING AS THE NEXUS FOR NEW MULTIMEDIA DIGITAL EXPERIENCES MINECRAFT:BLOCK BY BLOCKWESTROBLOX:ONE WORLD TOGETHER AT HOMEFORTNITE:TRAVIS SCOTTS ASTRONOMICALMUSICSPORTS&ESPORTSNBA 2K MATCHES ON ESPN LIVEFORTNITE:ESPN 8 THE OCHOTV&VIDEOFORTNITE:SHARK WEEK PREMIERFORTNITE:TEN

81、ET TRAILER PREMIERROBLOX:WONDER WOMAN THE THEMYSCIRA EXPERIENCELIFESTYLEMINECRAFT:UC BERKELEY GRADUATIONANIMAL CROSSING:POLITICAL CAMPAIGN SIGNSGRAND THEFT AUTO:GAMBLING AT THE DIAMOND CASINOeNASCAR iRACING PRO INVITATIONAL ON FOX GAMINGPARTICIPATION IN NON-GAMING ACTIVITIES OR EVENTS IN VIDEO GAMES

82、 WITHIN THE LAST 12 MONTHS,U.S.,2020,%GAMERS1 331.“Gamers”are defined as adults 18+who currently play video games.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)38%of gamers1 have participated in a non-gaming activity or event inside video games within the last 12

83、 months35%39%39%40%Live in-game concertsVirtual re-creations of social/life events within games(e.g.birthday parties,weddings)In-game movie and TV show previewsSports-related events and contentAMONG GAMERS1 WHO HAVE PARTICIPATED IN A NON-GAMING ACTIVITY OR EVENT IN THE LAST YEAR,THE TOP ACTIVITY WAS

84、 ATTENDING LIVE IN-GAME CONCERTSPARTICIPATION IN NON-GAMING ACTIVITIES OR EVENTS IN VIDEO GAMES WITHIN THE LAST 12 MONTHS BY TYPE,U.S.,2020,%GAMERS1 WHO HAVE PARTICIPATED IN A NON-GAMING ACTIVITY OR EVENT IN THE LAST 12 MONTHSGAMINGGamers will participate in social activities and events within video

85、 games that extend beyond gameplayIN-GAME SOCIAL BEHAVIORSEXAMPLE GAMES Birthday parties Weddings Meetings Private events Personalization of digital avatars(e.g.fashion/skins,dances/emotes)Customized locations to design and share within gamesGaming is where culture will be created and set evolving i

86、nto a deeply social behavior with a new set of digital experiences and functionality 34GAMING ENABLES PLAYERS TO ENGAGE AND INTERACT IN CREATIVE WAYSLOCATIONS FOR GATHERINGOPPORTUNITIES FOR SELF-EXPRESSIONUSER-GENERATED WORLDS&ENVIRONMENTSSources:Activate analysis,Company sites,TechCrunch,The Washin

87、gton PostGAMINGAll of the top titles feature online multiplayer gameplay 35TOP-EARNING PAID PC AND CONSOLE VIDEO GAME TITLES,GLOBAL,2019,MILLIONS USDSources:Activate analysis,Company sites,SuperData 35CALL OF DUTY:MODERN WARFARE$645MFIFA 19$786MGRAND THEFT AUTO V$595MFIFA 20$504MCALL OF DUTY:BLACK O

88、PS III$487MTOM CLANCYS THE DIVISION 2$370MTOM CLANCYS RAINBOW SIX SIEGE$358MNBA 2K19$370MPCPCPCPCPLAYSTATIONXBOXPERSONAL COMPUTERNINTENDO SWITCHPCPCPCPCPCGAMINGAbility to play co-op with up to three other playersTop mobile games provide unique opportunities for players to connect with their friends

89、and the gaming community 361.App stores analyzed include Google Play and App Store(iOS),and do not include third-party app stores.Candy Crush Saga includes PC revenues.2.”Mobile”is defined as smartphones and tablets.3.All earnings are global except for Monster Strike which is earnings in Japan.4.Als

90、o includes revenue from Arena of Valor.5.Estimated earnings in Japan of 102B JPY.Earnings have been converted from JPY to USD with the yearly average currency exchange rate for 2019 as defined by the IRS.Sources:Activate analysis,Company filings,Daily Esports,Game-i,Sensor Tower,SuperDataTOP MOBILE2

91、 GAMES ALLOW PLAYERS TO INTERACT WITH FRIENDS THROUGH GAMEPLAY 36PUBG Mobile$1.3BFate/Grand Order$1.1BPokmon Go$1.4BCandy Crush Saga$1.5BMonster Strike$0.9B5Honor of Kings$1.6B4Ability to play in matches and communicate with friends through messaging and voice chat Ability to gain points by interact

92、ing with friendsAbility to compare scores and records with friendsAbility to trade Pokmon,battle with friends,and send giftsAbility to compete against one another in teams made up of friends or strangersTOP-EARNING MOBILE GAME TITLES1,2,GLOBAL3,2019,BILLIONS USDGAMINGGame creation is also becoming a

93、 widespread social activity players design worlds and share experiences with their friends 371.MAU and copies sold numbers reflect available information as of Sept.29,2020.All metrics reflect global values.Sources:Activate analysis,Bloomberg,Company press releases,Company sites,TechCrunch,Twinfinite

94、,The Verge,The Washington PostBuild and share worlds with a community of players 132M MAU1 Over 200M copies soldConstruct 2D Super Mario courses,and share with friends and the communityDevelop 3D multiplayer games with standards-based tools and features(available free-to-play in Open Alpha)Design,sh

95、are,and monetize games in a free-to-play virtual universe 150M MAU1 (including 50%+of U.S.consumers aged 15 and under)Create and share experiences,maps,and games with friends and other playersPlay thousands of games created by a community of players and create your own games with a variety of tools

96、and tutorialsGAME CREATION ENGINES ARE ENABLING GAMERS AND DEVELOPERS TO DESIGN THEIR OWN EXPERIENCES AND SHARE THEM WITH THE GAMING COMMUNITY SIGNIFICANT SCALE INDICATES THAT GAME CREATION IS NOT A NASCENT ACTIVITYGAMINGThere is a paradigm shift in the conventional idea of a gamer,as gaming has exp

97、anded into new audience segments beyond young men56%66%44%47%Existing Gamers(consumers who played video games before the COVID-19 outbreak)%New Gamers(consumers who started playing video games during the COVID-19 outbreak)38DEMOGRAPHICS OF NEW VS.EXISTING GAMERS1,U.S.,20201.“Gamers”are defined as ad

98、ults 18+who currently play video games.2.“Before the COVID-19 outbreak”refers to the 12-month period before the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.before Mar.2020).3.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak

99、and subsequent social distancing measures(i.e.since Mar.2020).Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)FemaleAged 45+%Existing Gamers(consumers who played video games before the COVID-19 outbreak2)%New Gamers(consumers who started playing video games during

100、the COVID-19 outbreak3)56%of new gamers are aged 45+66%of new gamers are female GAMINGOverall time spent gaming has dramatically increased during the COVID-19 outbreak we expect to see sustained growth after the COVID-19 outbreak ends,especially on mobile platforms 39TIME SPENT WITH GAMING DURING AN

101、D AFTER THE COVID-19 OUTBREAK1 BY PLATFORM,U.S.,2020 ONWARDS,%INCREASE VS.BEFORE THE COVID-19 OUTBREAK2 AMONG ADULTS AGED 18-641.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.since Mar.2020).“After the COVID-

102、19 outbreak”refers to the 12-month period after the end of the COVID-19 outbreak and subsequent social distancing measures.2.“Before the COVID-19 outbreak”refers to the period before the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.before Mar.2020).3.This is an update

103、 to the“Rewire to Restart”report in May 2020,which indicated a 39%increase in time spent with gaming during the COVID-19 outbreak.4.“Mobile”is defined as smartphones and tablets.5.Nintendo Switch is included in“Console”and not included in“Handheld.”Sources:Activate analysis,Activate 2020 Consumer Te

104、ch&Media Research Study(n=4,003),Activate COVID-19 Consumer Tech&Media Research Study May 2020(n=1,925)All platformsMobile4PCConsole5Handheld512%14%11%16%14%INCREASE IN TIME SPENT WITH GAMING DURING THE COVID-19 OUTBREAK1,329%33%30%27%21%EXPECTED SUSTAINED GROWTH IN TIME SPENT WITH GAMING AFTER THE

105、COVID-19 OUTBREAK1GAMING15%of gamers1 consider social elements as one of their top reasons2 in selecting which games to playAs consumers increase their engagement with gaming platforms,social elements become even more important to these users offering these features will be essential to gamer satisf

106、action and retention 401.“Gamers”are defined as adults 18+who currently play video games.2.Gamers were asked to select up to 3 most important reasons in game selection.3.“Mobile”is defined as smartphones and tablets.4.“Gaming service users”are defined as gamers who currently use a gaming subscriptio

107、n and/or cloud gaming service.5.Gamers who consider social elements as a top reason in game selection were asked to select up to 3 most important social elements in game selection.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)MOST IMPORTANT SOCIAL FEATURES WHEN S

108、ELECTING WHICH GAME TO PLAY,U.S.,2020,%GAMERS1 WHO CONSIDER SOCIAL ELEMENTS TO BE A TOP REASON2 IN GAME SELECTION24%27%27%28%31%37%44%FOR GAMERS1 WHO CONSIDER SOCIAL ELEMENTS AS A TOP REASON2 IN GAME SELECTION,THE MOST IMPORTANT SOCIAL FEATURE5 IS THE ABILITY TO PLAY WITH FRIENDSAbility to play over

109、 the internet with existing friendsChallenge and competition formatUnique social experiences and content not related to gameplayOpportunity for self-expression,personalization,and customizationAbility to connect the game to a social network or messaging app/websiteBeing part of a communityAbility to

110、 meet new peopleAs likely as non-mobile gamers to consider social elements as one of their top reasons in game selection 3.3xMOBILE3 GAMERS:As likely as non-service users to consider social elements as one of their top reasons in game selection 2.5xGAMING SERVICE USERS4:As likely as single platform

111、gamers to consider social elements as one of their top reasons in game selection 3.2xMULTI-PLATFORM GAMERS:GAMINGRecognizing the importance of gaming as the next growth platform,the major technology companies are building their gaming stacks;Microsoft,Sony,and Tencent are nearly full stack playersGA

112、ME PUBLISHERVIRTUAL WORLDCONSOLEAR/VR DEVICECLOUDAPP STORESUBSCRIPTION SERVICEGAMING AS VIDEO1.Information as of Oct.2020.2.Not publicly available.3.Available in beta.4.Only available through a bundle with Xbox Game Pass Ultimate.5.Tencent is a majority stakeholder in both Huya and DouYu,which annou

113、nced a merger on Oct.12,2020.Sources:Activate analysis,Company sites323234eGame5GAMING 41TECHNOLOGY PLATFORMS PRESENCE IN GAMING1Major gaming and technology companies are continuing to develop their own subscription and cloud services to own the future of gaming this will accelerate the availability

114、 of multiplayer and cross-platform gaming 42TIMELINE OF GAMING SUBSCRIPTION AND CLOUD GAMING SERVICE RELEASES1,GLOBAL,2014 ONWARDS20152019$9.99/month(as of Sept.2019)$19.99/month(previously)201420162017EXPECTED2020$4.99/month4 Free tier available(PC/Mac/Android/SHIELD)$7.99/month(with Nvidia SHIELD)

115、$9.99/month2$4.99/month(Console)$4.99/month(PC)$14.99/month6 (beta version)Pricing unknown(beta version)$4.99/monthPricing unknown (beta version)$14.99/monthPLAY PASS$4.99/month$9.99/month3 Free tier availablePricing unknown (beta version)$5.99/month(launch date not yet announced)$4.99/month5(PC/Con

116、sole)NOT EXHAUSTIVE1.Positioning represents either product announcement or launch date.Reflects services monthly base prices as of Sept.29,2020.2.Reflects price for both PC and console subscriptions.3.Reflects price for“Pro subscription.”4.Reflects price for“Founders membership.”5.EA Access and Orig

117、in Access replaced with EA Play as of Aug.2020.6.Only available bundled with Game Pass Ultimate.Reflects price for“Game Pass Ultimate.”Sources:Activate analysis,Company press releases,Company sites,GameSpot,VentureBeat,The Verge GAMINGCloud gaming and gaming subscription services are seeing signific

118、ant penetration and interest we expect that the winning services will feature the top titles 43CURRENT AND INTENDED USAGE OF GAMING SUBSCRIPTIONS AND CLOUD GAMING SERVICES1,2,U.S.,2020,%GAMERS319%12%40%26%38%58%Intend to UseCurrently UseEXAMPLE SERVICESCan play games I normally cannot accessGame sel

119、ection/availabilityReceived with discount/promotionCan interact with friends while gamingAdditional perks(e.g.early access to games,exclusive game add-ons)Can play on a variety of devicesValue worth the priceCan play on-the-goAffordable/convenient console replacementConvenient for physical space (i.

120、e.does not require storage space for console)1.0 x1.2x1.2x1.3x1.3x1.3x1.4x1.5x1.5x1.7xINDEXED TO BASE RESPONSEPRIMARY REASONS FOR USING GAMING SUBSCRIPTIONS AND CLOUD GAMING SERVICES1,U.S.,2020,%GAMERS3 USING A GAMING SUBSCRIPTION OR CLOUD GAMING SERVICE1 INDEXED TO BASE RESPONSECloud Gaming Service

121、1Gaming Subscription11.Gaming subscriptions and cloud gaming services are not mutually exclusive.“Gaming subscription”is defined as a gaming service with a subscription pricing plan(e.g.pay$4.99/month for access to a game library).“Cloud gaming service”is defined as a gaming service that provides th

122、e ability to play video games by streaming from another device(e.g.server through the cloud).2.Figures do not sum due to rounding.3.“Gamers”are defined as adults 18+who currently play video games.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)GAMING1.Includes mone

123、y spent on video games and other video gaming purchases(e.g.in-app purchases)across all devices.2.“Gamers”are defined as adults 18+who currently play video games.3.“Gaming subscriptions”are defined as gaming services with a subscription pricing plan.4.“New users”are defined as gamers who have begun

124、using a gaming subscription since the COVID-19 outbreak(as of May 2020)and did not use one in the 12 months prior to outbreak.5.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.since Mar.2020).“After the COVID-1

125、9 outbreak”refers to the 12-month period after the end of the COVID-19 outbreak and subsequent social distancing measures.Sources:Activate analysis,Activate 2019 Consumer Tech&Media Research Study(n=4,006),Activate COVID-19 Consumer Tech&Media Research Study April 2020(n=1,866),eMarketer,Nielsen,Pri

126、cewaterhouseCoopers 44AVERAGE AMOUNT AND TIME SPENT BY GAMERS1,2,U.S.,2020,USD PER MONTH/HOURS:MINUTES PER DAYEXPECTED SUSTAINED GROWTH IN NEW USERS4,U.S.,2020 ONWARDS,%NEW GAMING SUBSCRIPTION USERSGAMERS USING GAMING SUBSCRIPTIONS3 ARE HIGHER-VALUE PLAYERS OVERALL$27$6Gamers Not Using Gaming Subscr

127、iptions3Gamers Using Gaming Subscriptions3DOLLARS SPENT PER MONTH1HOURS SPENT PER DAY18%higher time spend4.6X as much dollar spendCOVID-19 has accelerated gaming subscriptions as more gamers have signed up since the beginning of shelter-in-place;gaming companies will focus on retaining these high-va

128、lue players2:262:51Gamers Not Using Gaming Subscriptions3Gamers Using Gaming Subscriptions313M new users4 started using gaming subscriptions3 during the COVID-19 outbreak547%53%New users4 likely to continue using gaming subscriptions3 after the COVID-19 outbreak5 GAMINGAccess to highly valued conten

129、t,cloud and streaming technology,and favorable pricing models will enable successful cloud gaming services 45Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)ENABLERSIMPACTHOW THESE WILL ENABLE SUCCESSHighly valuable libraries of video game titles with consistent av

130、ailability Content availability and content exclusivity are top reasons why consumers start using gaming subscription and/or cloud gaming servicesMultiplayer gameplay available across all devices at high quality High bandwidth and low latency connections are essential for providing high-quality stre

131、aming gameplayInfrastructure and hardware to support gameplay on any device Robust cloud infrastructure and streaming technology will enable any device to have high-quality gaming experiences(e.g.mobile phones,low-end PCs)Lower financial barriers to adoption Subscription-based and free-to-play servi

132、ces can help to drive adoption and encourage gamers to explore more titlesSUBSCRIPTION&FREE-TO-PLAY PRICINGCONNECTIVITYCONTENT AVAILABILITYCLOUD-COMPUTING TECHNOLOGYGAMING CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Su

133、per Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sp

134、orts Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis133PAGE2020E2021E2022E2023E2024E796M752M700M641M567MWe forecast that esports will reach roughly 800 million viewers worldwide by 2024 47ESPORTS VIEWER

135、SHIP,GLOBAL,2020E-2024E,MILLIONSSources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Newzoo,SportyTellESPORTS VIEWERSESPORTSACTIVATE FORECASTEsports viewership grew rapidly between 2019 and 2020,including the time since the beginning of the COVID-19 outbreak

136、48ESPORTS VIEWERSHIP,U.S.,2019 VS.2020E,MILLIONS ESPORTS VIEWERS1 AGED 18+1.“Esports Viewers”refer to consumers who have watched at least one esports competition.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),U.S.Census Bureau66.1M69%GROWTH IN ESPORTS VIEWERSHIP2

137、0192020E39.2Mcurrent non-Esports Viewers are interested in watching esportsESPORTS VIEWERSHIP HAS LARGE GROWTH POTENTIAL:38.6MESPORTSACTIVATE FORECASTTIME SPENT WATCHING SPORTS ONLINETIME SPENT WATCHING SPORTS ON TVTIME SPENT WATCHING OTHERS PLAY VIDEO GAMES ONLINE1TIME SPENT WATCHING ESPORTS COMPET

138、ITIONSYounger viewers continue to push esports into the mainstream,spending more time watching esports and video game content than traditional sports content 49AVERAGE WEEKLY TIME SPENT WATCHING TRADITIONAL SPORTS AND VIDEO GAME/ESPORTS CONTENT BY AGE GROUP,GLOBAL,2020,%HOURS1.“Time spent watching o

139、thers play video games online”differs from watching esports competitions in that the games watched are not competitive and players do not play to win money.Sources:Activate analysis,Limelight Networks18-2526-3536-4546-6061+26%26%26%24%23%44%36%30%26%22%16%21%24%28%36%14%17%20%22%19%11.5Hours Per Wee

140、k:12.610.37.65.2Adults aged 18-25 spend more time watching video game and esports content than traditional sports contentESPORTSWell-established video game franchises are driving esports viewership 50TOP TITLES WATCHED BY NUMBER OF ESPORTS VIEWERS1,U.S.,2020,MILLIONS ESPORTS VIEWERS AGED 18+1.“Espor

141、ts Viewers”refer to consumers who have watched at least one esports competition.Number of Esports Viewers for each title refers to total viewers of the listed title.2.Call of Duty viewership number refers to total viewers of all titles within the franchise.Sources:Activate analysis,Activate 2020 Con

142、sumer Tech&Media Research Study(n=4,003),U.S.Census Bureau,VGChartz 50CALL OF DUTY24M2FRANCHISE FIRST PUBLISHED 2003FIFA 2022MFRANCHISE FIRST PUBLISHED 1993FORTNITE18MFRANCHISE FIRST PUBLISHED 2017PUBG MOBILE17MFRANCHISE FIRST PUBLISHED 2017GRAND THEFT AUTO V15MFRANCHISE FIRST PUBLISHED 1997MINECRAF

143、T14MFRANCHISE FIRST PUBLISHED 2011LEAGUE OF LEGENDS14MFRANCHISE FIRST PUBLISHED 2009APEX LEGENDS11MFRANCHISE FIRST PUBLISHED 2019WORLD OF WARCRAFT11MFRANCHISE FIRST PUBLISHED 1994OVERWATCH10MFRANCHISE FIRST PUBLISHED 2016DOTA 210MFRANCHISE FIRST PUBLISHED 2003COUNTERSTRIKE GLOBAL OFFENSIVE10MFRANCHI

144、SE FIRST PUBLISHED 2000ESPORTSEsports Viewers1Sports Viewers2Esports Viewers consider enhanced live viewing features essential to the experience,suggesting that traditional sports will adopt features already available in esports streams and broadcasts 511.“Esports Viewers”refer to consumers who have

145、 watched at least one esports competition.2.“Sports Viewers”refer to consumers who have followed(e.g.attended live events in person,watched games or highlights,read articles or statistics)at least one professional/collegiate traditional sport in the last 12 months.Sources:Activate analysis,Activate

146、2020 Consumer Tech&Media Research Study(n=4,003)29%31%32%30%31%35%34%54%56%56%57%60%60%63%Betting-focused contentMultiple camera angles/video layoutsStatistics and analyticsSocial elementsIn-game purchases of other competitive streamsAugmented reality/virtual reality integrationAbility to purchase m

147、erchandiseESPORTSINTEREST IN LIVE VIEWING FEATURES,U.S.,2020,%ESPORTS VIEWERS1/%SPORTS VIEWERS2 AGED 18+15%24%20%23%14%29%30%24%31%16%19%20%21%21%21%25%29%29%New Esports Viewers watch for different reasons than Existing Esports Viewers New Esports Viewers are more motivated by betting and an affinit

148、y for specific esports leagues 521.“Esports Viewers”refer to consumers who have watched at least one esports competition.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)NEW ESPORTS VIEWERS started watching esports between Sept.2019-Aug.2020EXISTING ESPORTS VIEWERS

149、started watching esports before Sept.2019To follow specific gameTo follow specific leagueTo improve gameplayTo explore new game/genreTo betTo determine whether to purchase gameTo follow specific playerTo follow specific teamTo socializeESPORTSREASONS FOR WATCHING ESPORTS,U.S.,2020,%ESPORTS VIEWERS1

150、AGED 18+Chat publicly as John Smithhere we goDo you think theyll win?I am not sure they canneither am I It just keeps going back and forth,both teams are on fire todayHere we goIve got money on this one!Twitch and YouTube(the two largest esports viewing platforms in the U.S.)offer integrated social

151、functions,but lack comprehensive statistics and analysis,betting integration,and data on past competitions 53Sources:Activate analysis,Company sites,Stream Hatchet,StreamlabsGamer1:Good work!Gamer2:this team is so good wow Gamer3:I really hope they can pull this win off Gamer1:this is ge:ng close Ga

152、mer4:go go go!Gamer3:I cant believe it!Gamer 1:I knew they could do it Gamer3:I really wasnt sure to be honest Gamer2:they were on their A-game today,thats for sure Gamer5:gg Gamer1:this is incredible Gamer2:do you think theyll win?Gamer3:Im not sure they can Gamer2:neither am I Gamer4:I think its a

153、 toss up 1.5B hours esports watched globally in Q2 2020ESPORTS5B hours esports watched globally in Q2 2020Luckbox,a digital esports betting platform,provides an example of what Esports Viewers expect in a live viewing experience 54Sources:Activate analysis,LuckboxJoin us on Discord1Statistics and an

154、alysis:win-rate from the last 12 months1Betting-focused content:view of in-game spread and ability to wager22Social elements:in-game chat and ability to follow/communicate with other viewers3Multiple camera angles/video layouts:indication of which players screen is currently displayed and their curr

155、ent standings44Statistics and analysis:in-game point counts55Ability to switch commentator language via Twitch integration663:Gamer1:here we go Gamer2:anyone be:ng on this match?Gamer3:No,need to see how things shake out today Gamer2:same here Gamer4:Ive got money on this one!Gamer1:good luck,hope i

156、t plays out in your favor Gamer4:fingers crossed,thanks Gamer2:Curious to see who wins here Gamer1:the stats point a clear direcGon Gamer2:I think its anyones game at this point Gamer3:I think so tooESPORTSEsports Viewers are more likely to be male,young,affluent,and educated than non-Esports Viewer

157、s 551.“Esports Viewers”refer to consumers who have watched at least one esports competition.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)9%20%36%39%33%47%65%72%Esports ViewersNon-Esports ViewersMALEHOLDS A BACHELORS DEGREEAGED 18-34HAS A HOUSEHOLD INCOME OF$100K

158、 OR GREATER1DEMOGRAPHICS,U.S.,2020,%ADULTS AGED 18+ESPORTS31%37%69%63%Paid to gain access to a live esports competition online(e.g.ESPN+,DAZN)Bought an item after seeing it promoted by an esports player(e.g.energy drink,vitamin/supplement)Bought esports merchandise (e.g.team or player apparel,tourna

159、ment collectible)Donated to an esports team or player (e.g.Twitch or PayPal donation)New Esports Viewers are more likely to have made esports purchases than Existing Esports Viewers;live online competitions are the most popular purchase category for both new and existing viewers 561.“Esports Viewers

160、”refer to consumers who have watched at least one esports competition.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)ESPORTS SPENDING BEHAVIOR,U.S.,2020,%ESPORTS VIEWERS1 AGED 18+ESPORTS SPENDING BEHAVIOR BY TYPE OF SPEND,U.S.,2020,%ESPORTS VIEWERS1 AGED 18+23%24%

161、31%33%23%23%28%29%Existing Esports ViewersNew Esports ViewersHave spent on esports-related products/servicesHave not spent on esports-related products/servicesstarted watching esports before Sept.2019started watching esports between Sept.2019-Aug.2020EXISTING ESPORTS VIEWERS started watching esports

162、 before Sept.2019NEW ESPORTS VIEWERS started watching esports between Sept.2019-Aug.2020ESPORTSEsports will see significant revenue growth over the next 4 years,driven primarily by the continued rise in consumer spend 57ESPORTS REVENUE BY TYPE,GLOBAL,2020E VS.2024E,BILLIONS USDSources:Activate analy

163、sis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,The Morning Call,Newzoo,PricewaterhouseCoopers2020E2024E$1.8B$1.0B$3.3B$1.7B2020E-2024E CAGR:Consumer Spend (e.g.tickets,gambling)B2B Spend (e.g.sponsorships,advertising,media rights)$2.7B$5.1B15%18%2020E-2024E CAGR:17%ESPORTSAC

164、TIVATE FORECAST 58ESPORTS VIEWER1 AVERAGE DOLLAR SPEND INDEXED AGAINST NON-ESPORTS VIEWER AVERAGE DOLLAR SPEND BY MEDIA TYPE,U.S.,2020,INDEXED SCORE OF ESPORTS VIEWERS VS.NON-ESPORTS VIEWERS AGED 18+Music and Music Services(e.g.streaming,satellite radio)Video Games and In-Game Purchases(e.g.new titl

165、es,in-app upgrades)Video and Video Services(e.g.streaming,cable/satellite TV)1.“Esports Viewers”refer to consumers who have watched at least one esports competition.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)LEVEL OF DOLLAR SPEND COMPARISONEsports Viewers also

166、 spend considerably more money than non-Esports Viewers on other media products and services such as music,video games,and video8.8x7.1x2.4xEsports Viewers on average spend 8.8x as much money on music&music services than non-Esports ViewersEsports Viewers on average spend 7.1x as much money on video

167、 games and in-game purchases than non-Esports ViewersEsports Viewers1 vs.Non-Esports ViewersEsports Viewers on average spend 2.4x as much money on video and video services than non-Esports ViewersESPORTSTo improve my own gameplayTo watch the specific game being playedTo become familiar with a new ga

168、me or genreTo decide whether to purchase/play a game28%32%34%35%Beyond the direct revenues that esports generates,esports will be critical to the video game industry overall,as it will continue to drive gamer spend 591.“Esports Viewers”refer to consumers who have watched at least one esports competi

169、tion.2.“Esports Super Fans”are adults 18+who watch esports competitions at least once per week.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)ESPORTS VIEWERS BY FREQUENCY OF VIEWING,U.S.,2020,%ESPORTS VIEWERS1ESPORTS SUPER FANS BY REASON FOR WATCHING ESPORTS,U.S.,

170、2020,%ESPORTS SUPER FANS246%At least once per week15%A few times per year29%About once per month10%About once per year or lessESPORTS DRIVES ENGAGEMENT AND CONSUMER SPEND FOR VIDEO GAMES46%Esports Super Fans2TOTAL ESPORTS VIEWERS1:66MESPORTS CONTENTS$375 Billion Global Technology and Media Growth Do

171、llars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need

172、for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis133PAGE2020E-2024E CAGR:Driven by COVID-19,daily video consumption increased by

173、nearly 25 minutes in 2020,with most of the growth coming from digital video 61AVERAGE DAILY VIDEO TIME PER ADULT AGED 18+BY TYPE,U.S.,2019 VS.2020E VS.2024E,HOURS:MINUTES1.“Digital video”includes video watched on a mobile phone,tablet,laptop computer,desktop computer,or Connected TV.Connected TVs ar

174、e TV sets that can connect to the internet through built-in internet capabilities(i.e.Smart TVs)or through another device such as a streaming device(e.g.Amazon Fire TV,Apple TV,Google Chromecast,Roku),gaming console,or Blu-ray player.2.“Television”includes traditional live and time-shifted(e.g.DVR)t

175、elevision viewing.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,Nielsen20192020E2024ETelevision2Digital Video13:142:392:351:515:055:14-5.2%4.0%-1.2%ACTIVATE FORECAST5:293:162:13VIDEOBy 2024,we forecast 46M Battleground TV Households,which will have bro

176、adband access only and not Pay TV 62TELEVISION HOUSEHOLD BREAKDOWN1,U.S.,2020E VS.2024E,MILLIONS HOUSEHOLDS1.Figures do not sum due to rounding.2.“Pay TV”includes traditional Pay TV households and virtual Pay TV households.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=

177、4,003),Leichtman Research Group,MoffettNathanson,Nielsen,Parks Associates,S&P Global,U.S.Census Bureau2020E2024E79M61M28M46M14M16M121M123MPAY TV HOUSEHOLDSNON-PAY TV HOUSEHOLDSBROADBAND ONLY OVER-THE-AIRPAY TV2Battleground TV HouseholdsCore TV HouseholdsINCLUDING 11M VIRTUAL PAY TV HOUSEHOLDSACTIVAT

178、E FORECASTINCLUDING 18M VIRTUAL PAY TV HOUSEHOLDSVIDEONearly all households will have a Connected TV by 2024 63Note:Connected TVs are TV sets that can connect to the internet through built-in internet capabilities(i.e.Smart TVs)or through another device such as a streaming device(e.g.Amazon Fire TV,

179、Apple TV,Google Chromecast,Roku),gaming console,or Blu-ray player.1.”Connected TV Households”include households for which at least one person of any age uses the internet through a Connected TV at least once per month.2.“Penetration”is measured as consumers of any age who use the internet through th

180、e listed device at least once per month.3.“Connected TV monthly users”include consumers of any age who use the internet through a Connected TV at least once per month.4.Figures do not sum due to rounding.Sources:Activate analysis,eMarketerCONNECTED TV HOUSEHOLDS1,U.S.,2017-2024E,MILLIONSPENETRATION2

181、 BY SELECT CONNECTED TV DEVICES,U.S.,2017-2020E,%CONNECTED TV MONTHLY USERS32017201820192020E2021E2022E2023E2024E105M99M94M85M113M112M110M108M105M2017201820192020E28%37%25%17%13%48%17%Connected Gaming ConsolesSmart TVs2017 VS.2020E PENETRATION DELTA4:Connected Blu-ray Players49%34%35%16%12%61%12%21%

182、10%-3%-2%-1%12%-4%VIDEO 64ESTIMATED NUMBER OF SUBSCRIBERS/USERS FOR SELECT MAJOR VIDEO STREAMING SERVICES,GLOBAL,2020 OR MOST RECENT,MILLIONS SUBSCRIBERS/MILLIONS MONTHLY ACTIVE USERS1.Reflects estimated monthly active users as no recent official numbers have been reported.2.Reflects average monthly

183、 active users for 2019.3.Reflects the most recently reported number of monthly active users as of Apr.2019.4.Subscriber count as of Q4 2019.5.Reflects self-reporting that The Roku Channel reached active accounts with approximately 43 million people in Q2 2020.6.Reflects U.S.monthly active users as r

184、eported in Sept.2020.Although Xumo is also available internationally,global users were not reported.7.Reflects the number of sign-ups for Peacock across the free and paid subscription tiers.9.Reflects monthly active users as of Mar.2019.8.Does not include consumers subscribing to HBO/HBO Max through

185、 a Pay TV provider(e.g.purchasing the HBO add-on to a cable/satellite TV package and receiving HBO Max at no additional cost).Includes consumers subscribing to the HBO Max or HBO(formerly HBO Now)OTT service directly(e.g.subscribing to HBO Max through the service website)or through a non-Pay TV thir

186、d party(e.g.subscribing to HBO through Amazon Prime Video Channels).9.Represents estimated sign-ups for Apple TV+as Apple has not released official subscriber counts.Does not represent all Apple device customers eligible for the 12-month free trial of the service.10.Reflects the number of registered

187、 users on MUBI.Sources:Activate analysis,Bloomberg,Business Insider,Business Wire,CNBC,Company filings,Company press releases,Company sites,Cord Cutters News,Deadline,Digiday,Digital TV News,eMarketer,FierceVideo,Media Play News,MediaPost,Multichannel News,nScreenMedia,TechCrunch,Variety,The Verge,T

188、he Washington Post476M150M43M36M34M33M33M22M11M24M10M9M9M9M7M13M4(including Prime Video)(formerly Hotstar)The streaming wars will be fought locally and globallyPaid video streaming subscription SVOD (Millions subscribers)Free video streaming service with ads AVOD,FAST(Millions monthly active users)V

189、ideo streaming service with a paid subscription tier and a free tier with ads(Millions monthly active users)41M8M61M500M193M300M3567981012VIDEO+The average paid video streaming subscriber owns 4.1 subscriptions today;we forecast that this will increase to 5.7 subscriptions by 2024 65NUMBER OF PAID V

190、IDEO STREAMING SUBSCRIPTIONS OWNED PER SUBSCRIBER,U.S.,2016-2020,%PAID VIDEO STREAMING SUBSCRIPTION OWNERS AGED 18+1.Examples of such promotions include:a Disney+subscription received for free through a Verizon mobile plan,an Apple TV+subscription received for free through an Apple device purchase.S

191、ources:Activate analysis,Activate 2016 Consumer Tech&Media Research Study(n=4,000),Activate 2017 Consumer Tech&Media Research Study(n=4,047),Activate 2018 Consumer Tech&Media Research Study(n=4,000),Activate 2019 Consumer Tech&Media Research Study(n=4,006),Activate 2020 Consumer Tech&Media Research

192、Study(n=4,003),PricewaterhouseCoopers,U.S.Bureau of Labor Statistics2016201720182019202057%50%32%21%13%21%28%31%32%31%22%22%37%47%56%1 Service2 Services3.13+ServicesAverage Number of Paid Video Streaming Subscriptions Owned Per Subscriber2.21.8(+20%)(+44%)(+30%)4.1We forecast that the average paid v

193、ideo streaming subscription owner will own 5.7 subscriptions by 20241.6(+15%)ACTIVATE FORECASTNote:We have updated our methodology.We are now tracking paid video streaming subscription ownership,which includes subscriptions for which the consumers household is paying as well as subscriptions that th

194、e consumers household is receiving for free through a promotion1.Ownership does not include paid video streaming subscriptions that are being accessed by borrowing the account credentials of someone who is not a member of the consumers household.VIDEOPaid video streaming subscribers are also watchin

195、g video for free many are borrowing passwords from friends and using free,ad-supported services 661.“Borrowing”a paid video streaming subscription is defined as accessing the subscription by borrowing the credentials of someone who is not a member of the household.2.YouTube and Twitch excluded due t

196、o emphasis on user-generated video.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)NUMBER OF PAID VIDEO STREAMING SUBSCRIPTIONS BORROWED1 PER ADULT AGED 18+,U.S.,2020,%PAID VIDEO STREAMING SUBSCRIPTION OWNERSNUMBER OF FREE VIDEO STREAMING SERVICES2 WITH ADS USED PE

197、R ADULT AGED 18+,U.S.,2020,%PAID VIDEO STREAMING SUBSCRIPTION OWNERS47%Do not borrow any paid subscriptions35%Borrow 3+paid subscriptions18%Borrow 1-2 paid subscriptions53%32%Do not use any free services with ads40%Use 3+free services with ads28%Use 1-2 free services with ads68%of paid video streami

198、ng subscriptions owners borrow one or more paid video streaming subscriptionsof paid video streaming subscriptions owners use one or more free video streaming services with adsVIDEOEnhancements to the video streaming experience have the potential to drive more usage;virtual watch party features made

199、 video viewing a shared experience while people were sheltering in place 671.Figures do not sum to 100%due to rounding.2.“Video viewers”are defined as consumers who watch movies/TV shows.Sources:Activate analysis,Activate 2020 Consumer Connectivity&Video Research Study(n=2,123),Company sites,Deadlin

200、e,Digiday,Engadget,FierceVideo,TechCrunch,Variety,The VergeHulu began testing its Watch Party feature for subscribers of its ad-free tier2020APRILMAYJUNEJULYAUGUSTSEPTEMBERMARCHFEBRUARYJANUARYOCTOBERVIRTUAL WATCH PARTIES Tools that synchronize video streaming to allow groups of viewers to watch the

201、exact same movie/TV show online at the exact same time while in different locationsIncreasingly,video streaming services are launching their own in-service virtual watch party capabilities prior to 2020,watch parties were offered primarily through third parties such as Scener and Netflix PartyAmazon

202、 rolled out its Watch Party feature for Prime subscribersMovies Anywhere debuted its Watch Together featureFacebook added Watch Together to Messenger for viewing Facebook Watch videosDisney started testing its GroupWatch function for Disney+subscribersPlex launched its Watch Together feature for its

203、 on-demand content as well as users personal media librarySELECT VIRTUAL WATCH PARTY FEATURES LAUNCHED IN 2020PARTICIPATION AND INTEREST IN VIRTUAL WATCH PARTIES BY AGE GROUP1,U.S.,2020,%VIDEO VIEWERS2 AGED 18+Aged 18-34Aged 35+58%24%26%30%16%47%Have participated in a virtual watch party in the last

204、 18 months Have not participated in a virtual watch party,but are interested in participating in the future Have not participated in a virtual watch party and are not interested in participating in the futureof video viewers2 aged 18-34 have already participated in a virtual watch party or are inter

205、ested in participating in the futureSling TV became the first live TV service to offer a Watch Party feature77%VIDEOInteractive titles and augmented reality will pave the way for video streaming to approximate a video gaming experience 68Sources:Activate analysis,Company press releases,Company sites

206、,Deadline,Digiday,Variety,The VergeSELECT NEXT GENERATION VIDEO STREAMING SERVICE FEATURESINTERACTIVE TITLES MOVIES/TV SHOWS THAT ALLOW THE VIEWER TO MAKE CHOICES THAT INFLUENCE THE NARRATIVEAUGMENTED REALITY CONTENT CONTENT THAT USES AUGMENTED REALITY(AR)TECHNOLOGY TO PLACE THE VIEWER INTO THE MOVI

207、E/TV SHOWVIRTUAL EXPERIENCES IMMERSIVE EXPERIENCES IN WHICH THE USER CAN EXPLORE AND INTERACT WITH AN ONLINE WORLDSince 2017,Netflix has released several interactive titles,including Black Mirror:Bandersnatch,which allow viewers to participate in what they are watchingSnapchat has increasingly been

208、adding AR capabilities that put viewers into its Originals;this includes Move It!,which will track viewers movements as they learn dancesAs part of its annual Halloween event,Hulu has launched The Screamlands,a virtual haunted house experience with five different themed rooms that users can tourBlac

209、k Mirror:BandersnatchReleased 2018 Move It!Announced 2020 VISIT DR.HAYNESFOLLOW COLINThe ScreamlandsLaunched 2020 VIDEOAs consumers use more video streaming services,there is an increasing need for aggregators to unify the user experience 69VIDEO STREAMING SERVICE AGGREGATORSSources:Activate analysi

210、s,Company press releases,Company sites,Digiday,FierceVideo,TechCrunch,The VergeVideo Streaming Hubs Allow consumers to subscribe to,manage,and watch multiple video streaming services through a single website/appVideo Streaming Guides Allow consumers to browse,search,and/or receive recommendations ac

211、ross multiple video streaming services through a single website/app Example PlayersExample PlayersCHANNELSchannelsVUNIVERSE (BETA)VIDEOPremium SubscriptionsRICK LAXSAFAREEADLEYJUSTIM FLOMPAUL VU56M Unique Viewers56M Unique Viewers46M Unique Viewers43M Unique Viewers37M Unique ViewersMICHAEL ANDREASC

212、ARDI BTEDDY RILEYROD WAVEYOUNG BUCK38M Unique Viewers38M Unique Viewers29M Unique Viewers20M Unique Viewers20M Unique ViewersKIDS DIANA SHOWGIRLSTTOYZZVLAD AND NIKIGENEVIEVES PLAYHOUSERYANS WORLD57M Unique Viewers34M Unique Viewers28M Unique Viewers28M Unique Viewers25M Unique ViewersJULIUS DEINMRBE

213、ASTDANCINGDANBIGDAWSTVLANCE210 PRANKS53M Unique Viewers34M Unique Viewers23M Unique Viewers18M Unique Viewers16M Unique ViewersENTERTAINMENTKIDS ENTERTAINMENT&ANIMATION MUSIC&DANCEPEOPLE&BLOGSWeb video will continue to be a large part of peoples video viewing,driven by their dedication to web-native

214、 influencers and personalities 70TOP INFLUENCERS ACROSS FACEBOOK AND YOUTUBE BY TOP GENRE1,U.S.,AUG.2020,MILLIONS UNIQUE VIEWERS AGED 13+21.Top influencers determined by the number of deduplicated unique viewers across Facebook and YouTube based on 30-second views.Does not include accounts that prim

215、arily aggregate third-party,user-submitted content or memes.Top genres based on total unique viewers among the top 100 influencers.2.Represents deduplicated unique viewers across Facebook and YouTube based on 30-second views.Sources:Activate analysis,Tubular LabsVIDEOMUSICDISNEYMUSICVEVOULTRA MUSICA

216、TLANTIC RECORDSWORLDSTAR HIP HOP/WSHHWARNER MSICA85M UNIQUE VIEWERS61M UNIQUE VIEWERS55M UNIQUE VIEWERS48M UNIQUE VIEWERS42M UNIQUE VIEWERSOn YouTube,major media companies account for substantial viewership 711.Based on YouTubes definition of views.Figures do not sum to 100%due to rounding.2.“Media

217、companies”are defined as organizations whose primary business model is in production and/or distribution of content(e.g.TV,movies,music,print,radio).3.Top media company pages determined by the number of unique viewers on YouTube.Sources:Activate analysis,Tubular LabsSHARE OF YOUTUBE VIEWS OF U.S.-BA

218、SED MEDIA COMPANY PROGRAMMING BY CATEGORY1,2,GLOBAL,YTD AUG.2020,%VIEWSTOP U.S.-BASED MEDIA COMPANY PAGES ON YOUTUBE BY CATEGORY2,3,GLOBAL,AUG.2020,MILLIONS UNIQUE VIEWERS27%MOVIES AND TV21%MUSIC12%KIDS ENTERTAINMENT AND TOYS7%NEWS,GOVERNMENT,AND POLITICS8%SPORTS26%OTHERMOVIES AND TVMOVIECLIPSNETFLI

219、XTHE TONIGHT SHOW STARRING JIMMY FALLONWARNER BROS.PICTURESELLEN DEGENERES135M UNIQUE VIEWERS46M UNIQUE VIEWERS37M UNIQUE VIEWERS37M UNIQUE VIEWERS30M UNIQUE VIEWERS12345KIDS ENTERTAINMENT AND TOYSCOCOMELON-NURSERY RHYMESPINKFONG!KIDS SONGS&STORIESLITTLE ANGEL:NURSERY RHYMES&KIDS SONGSTALKING TOMBAB

220、YBUS-NURSERY RHYMES317M UNIQUE VIEWERS197M UNIQUE VIEWERS103M UNIQUE VIEWERS96M UNIQUE VIEWERS85M UNIQUE VIEWERS1234512453VIDEOTikTok has seen tremendous user and engagement growth in 2020 721.Desktop users aged 2+and mobile(i.e.smartphone,tablet)users aged 13+.Sources:Activate analysis,ComscoreTOTA

221、L UNIQUE VISITORS1,U.S.,JAN.2020-AUG.2020,MILLIONSAVERAGE MONTHLY TIME SPENT PER VISITOR ON DESKTOP,MOBILE WEB,AND APP BY SOCIAL PLATFORM1,U.S.,JAN.2020-AUG.2020,HOURS41176January 2020August 202035M139M159M70MJanuary 2020August 2020VIDEO20192020E2021E$20B$18B$14B$45B$35B$32B$67B$61B$70B$78B$80B$89BT

222、hough digital video is drawing significant consumer spend and attention,most of the dollars in video will still be in television 73VIDEO REVENUE BY TYPE1,U.S.,2019-2021E,BILLIONS USD1.Figures do not sum due to rounding.2.Includes spend on online video on-demand transactions(e.g.purchases and rentals

223、).3.Includes spend on paid video streaming subscriptions.4.Includes in-stream video advertising(e.g.pre-roll,mid-roll,post-roll)on digital video content,including on social networks,and out-stream video advertising(e.g.native,in-feed,in-article,in-banner,interstitial).5.Includes advertising on broad

224、cast TV and Pay TV.6.Includes revenue from Pay TV subscriptions.Sources:Activate analysis,Digital TV Research,eMarketer,PricewaterhouseCoopers,StatistaPay TV Subscriptions6TV Advertising5Ad-Supported4Subscription3EST/Rental2$214B$199B$209B2019-2021E CAGR:6.6%21.4%18.7%-2.5%-6.6%$4B$4B$5BDIGITAL VIDE

225、OTELEVISION1.2%VIDEO CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households6

226、0AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis1

227、33PAGEVirtual Reality(VR)We forecast that the Augmented Reality(AR)/Virtual Reality(VR)market will reach roughly$20B by 2024 75AR/VR1.Excludes revenues associated with mobile AR,data,advertising,and peripherals.2.Excludes Google Cardboard and other headsets with no built-in technology.Sources:Activa

228、te analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),AR Insider,ARtillery Intelligence,Company press releases,Company sites,eMarketer,IDC,Morgan Stanley Research,PricewaterhouseCoopers,Road to VR,Sensor Tower,Statista,Steam Spy,Strategy Analytics,SuperData,VGChartz$19.8BVR technolog

229、y matures and pricing remains at reasonably low levels Standalone VR headsets,which improve the user experience,capture a greater share of total unit sales A robust content ecosystem for VR headsets is available and encourages spending VR adoption primarily serves gaming use cases for consumers,but

230、also increases usage and adoption for non-gaming activitiesWhat would you have to believe?Augmented Reality(AR)AR technology,form factor,and price improve sufficiently to overcome adoption barriers At least one major technology company launches an AR headset and achieves broad consumer adoption Init

231、ial models of consumer AR glasses are paired with smartphones,similar to other wearables Investment in enterprise-focused AR increases,spurring hardware adoption and software development for an array of use cases and specialized applicationsAdvertising PeripheralsMobile AR DataHeadsets with no built

232、-in technology2Excluded from sizing:CONSUMER AND ENTERPRISE SPEND1 ON AR/VR,U.S.,2020E VS.2024E,BILLIONS USD2020E2024E$4.2B$1.4B$2.4B60%EDUCATIONAL PURPOSESENTERTAINMENT VIDEOS/DOCUMENTARIESLIVE EVENT STREAMINGSHOPPINGTHERAPEUTIC ACTIVITIESSOCIAL INTERACTIONSVIRTUAL TOURS OR TRAVELJOB TRAINING/JOB-R

233、ELATED ACTIVITIESAR/VRTethered HeadsetsHeadset powered by an external computing device(e.g.PC,gaming console)with a built-in display screenScreenless Viewers2Headset that requires a separate device for a display screen (e.g.smartphone)Standalone HeadsetsFully functional headset without the need for

234、an external computing deviceWe believe that the shift in consumer VR adoption from screenless viewers to standalone headsets will continue 791.Figures do not sum to 100%due to rounding.2.Excludes headsets with no built-in technology,such as Google Cardboard.Sources:Activate analysis,Company sites,ID

235、C,VentureBeat,Virtual Perceptions,Wareable2015201620172018201961%34%2%2%4%36%51%44%29%7%3%15%53%69%89%CONSUMER VR HEADSET SHIPMENTS BY TYPE1,U.S.,2015-2019,%SHIPMENTS4%2%2%3%AR/VRHow Standalone Headsets1 Create a Superior User ExperienceAdvantage over Tethered Headsets2Advantage over Screenless View

236、ers3No WiresNo cables required No need to carry an external device Ability to use and set up anywhereNo Hardware RequirementsBuilt-in screen,processors,and storage No external PC/console required,which can present additional costsFrees Up User DevicesDoes not drain smartphone battery Consumer can co

237、ntinue to use their smartphone simultaneouslyBetter Visuals than Phone DisplayHigher display speeds Clearer graphics VR-optimized chips for video processingStandalone headsets provide a superior experience for users and address key limitations of tethered headsets and screenless viewers 801.“Standal

238、one headset”is defined as a headset that is fully functional without the need to be tethered to another computing device(e.g.Oculus Quest).2.“Tethered headset”is defined as a headset that has a screen but relies on another computing device to function(e.g.PC,gaming console).3.“Screenless viewer”is d

239、efined as a headset that relies on a separate device for a screen(e.g.phone).Excludes headsets such as Google Cardboard with no built-in technology.Sources:Activate analysis,Company sites,IDC,VentureBeat,Virtual Perceptions,WareableStandalone headsets1 have been a significant factor in the improveme

240、nt of the VR user experience Standalone headsets1 are driving further consumer adoption of VR(growing to 61%of U.S.VR headset shipments in 2019 from 2%in 2017)AR/VRSOFTWARE-BASED VISUAL IMPROVEMENTKEY IMPROVEMENT AREASEye tracking Automated IPD2 calculationEND-USER IMPACTImproved image quality Reduc

241、ed chance of nausea Extended functionalities(e.g.eye-based navigation)EXAMPLE EFFORTSSCREEN QUALITYKEY IMPROVEMENT AREASDisplay resolution(e.g.2K,4K,8K)Field of view(e.g.90 view)Image quality(e.g.MicroLEDs,OLEDs)1END-USER IMPACTImproved image quality Greater perception of immersionEXAMPLE EFFORTSCON

242、NECTIVITYKEY IMPROVEMENT AREASConnections with high bandwidth Connections with low latency Remote storage and computeEND-USER IMPACTImproved image quality Reduced vision lag Lighter weight headsets(e.g.remote storage)EXAMPLE EFFORTSVR will see additional growth from technology improvements specific

243、to VR as well as more general technology developments,such as 5G connectivity and improved batteries 811.Other elements of image quality include subpixel count,pixel density,subpixel layout(e.g.RGB Stripe vs.Pentile),and more.2.“IPD”refers to inter-pupillary distance,which is the physical distance b

244、etween the users pupils.Sources:Activate analysis,Ars Technica,Company press releases,Company sites,Digital Trends,Forbes,SPIE,TechRadar,University of Rochester,The Verge,Wareable5G Verizon,AT&T,T-MobileCloud Amazon Web Services,Microsoft AzurePeripherals for Wireless Play TPCast,DisplayLinkENERGY E

245、FFICIENCYKEY IMPROVEMENT AREASBattery life (while retaining low size and weight)Processor efficiency Foveated rendering(i.e.natural blur)END-USER IMPACTLonger sessions of usage Lighter weight headsetsEXAMPLE EFFORTSBattery Peripherals VRPowerResearch Labs Facebook Research,UniversitiesProcessors Nvi

246、dia,AMDVR Headsets Pimax,Varjo,HP,StarVR,XTALEye Tracking Tobii,FOVE,XXXXXX(acquired by X X)Research Labs Facebook Research,UniversitiesAR/VRAR has massive potential to augment smartphones(similar to smartwatches)through increased integrations between the real world and the digital world 821.6DoF(6

247、degrees of freedom,which includes x,y,z,roll,pitch,yaw)tracking enabled by SLAM(simultaneous location and mapping).Pokmon Go originally did not map environment,but used GPS as a rough approximation.Current versions can map to the environment.Sources:Activate analysis,KGOnTech Blog,TechCrunch,The Ver

248、geAR ROADMAPENTERPRISE/FIRST ADOPTER TOOLDIFFERENTIATING FUNCTIONALITY Headsets allowing free use of hands and a larger field of view vs.phone(but often bulky)Significant increases in reliability,durability,and accuracy Improved integration of digital and physical data (e.g.precise overlays for surg

249、eons)APPLICATIONS Enterprise applications where overlaid content significantly enhances performance (e.g.surgery,oil&gas fieldwork,assembly lines)EXAMPLESNICHE TOOLSETDIFFERENTIATING FUNCTIONALITY Apps on smartphones using the phone screen and camera(s)Tracking and mapping environment1 Facial recogn

250、ition Physics engines/light estimation APPLICATIONS Games anchored in the real world (e.g.Minecraft on a table)Retail(e.g.ability to digitally try on clothes and place furniture before purchase)Ability to apply filters to face Visual search(using phones camera to identify items)EXAMPLES(Furniture pl

251、acement)(Lenses)TODAYSMARTPHONE REPLACEMENT/COMPANIONDIFFERENTIATING FUNCTIONALITY Headsets either augmenting or replacing smartphones Integrating other technologies and connectivity:5G,IoT,data contextualization via AI,etc.Lower price and improved form factor Usability improvements:longer battery l

252、ife,improved field of view via consumer headsets APPLICATIONS Consumer-specific applications:communication,navigation,fitness,real-time health diagnostics,etc.Multiple virtual screens that can be overlaid on any surface Intuitive 3D data modeling (e.g.weather,traffic)EXAMPLES Not yet developedAR/VR

253、83Note:Prices as of Oct.1,2020.1.North was acquired by Google in June 2020.2.Measured as the diagonal field of view in this example.Sources:Activate analysis,Aniwaa,CB Insights,Company press releases,Company sites,Perkins Coie,Road to VR,Statista,Toms Hardware,U.S.News&World Report,WareableConsumer-

254、grade AR headsets are not there as of yet most of the big tech firms are working to refine price,design,and technology to encourage mass adoptionPRICEFORM FACTOR/DESIGNTECHNOLOGYBARRIER TO MASS ADOPTIONWith prices often exceeding$1,000,AR headsets are too expensive for the average consumer example p

255、rices include:Microsoft HoloLens 2:$3,500 Epson Moverio BT-350:$1,199Consumers are unlikely to wear heavy and unattractive headgear Many current AR headsets are quite heavy(e.g.Microsoft HoloLens 2 weighs 566g vs.eyeglasses at an average of 25g to 50g)Consumer adoption will require longer battery li

256、fe,larger viewing area(FOV),improved visuals,and greater mobility Industry specialists rated user experience(including hardware/technology)as the top obstacle for mass AR adoption(32%for AR vs.19%for VR)ATTEMPTS TO OVERCOME BARRIERSeveral AR companies have lowered headset prices to spur growth,often

257、 by hundreds of dollarsCompanies are pushing to create AR glasses with a profile similar to eyeglasses or sunglasses stylish and lightweight for daily useCompanies are launching headsets with greater storage and larger field of view to create more immersive AR experiencesCOMPANIES WORKING ON BARRIER

258、Kopin SOLOS:AR glasses for cyclists at$499 Nreal Light:consumer product priced at$600Facebook:partnering with Luxottica to build AR Ray-Bans glasses FocalsbyNorth smart glasses1:similar to stylish prescription glasses,weigh 70g to 80g Nreal Light:weighs 88gMicrosoft HoloLens 2:larger field of view(F

259、OV)2 of 52 compared to the original HoloLens with an FOV of 34 Vuzix M400:64GB storage and 6GB RAM,compared to Vuzix Blades 8GB storage and 1GB RAM AR ADOPTION BARRIERS AND ATTEMPTS TO OVERCOMEEXAMPLE COMPANIES DEVELOPING AR HEADSETSBIG TECH AR-FOCUSED1AR/VRSOLOS AR SMART GLASSESUse case:Cycling Pri

260、ce:$4991 Description:SOLOS are smart glasses made for cyclists that sync with fitness apps,are compatible with Bluetooth and ANT+,offer navigation,are lightweight(65g),and track workout performance Limitations:Limited display2,single use caseSNAP SPECTACLES 3Use case:Social Media Price:$3801 Descrip

261、tion:Spectacles are camera glasses that capture 3D photos and record videos,sync with Snapchat,and can keep up to 100 videos and 1,200 photos Limitations:No real-time AR effects(added afterward inside the Snapchat app)CAREOS-POSEIDON SMART MIRRORUse case:Health&Beauty Price:$3,000-$5,0001 Descriptio

262、n:Poseidon mirrors have the CareOS platform built in with facial recognition,360 videos,virtual try-ons,skin analysis,vision tests,and voice commands Limitations:Expensive,stationaryWhile working to create consumer-friendly AR headsets,companies are exploring transitional technologies to address spe

263、cific use cases 841.Prices as of Sept.21,2020.2.Display field of view(FOV)of 11.3.Smithsonian National Museum of Natural History.Sources:Activate analysis,Company press releases,Company sites,Engadget,WareableCURRENT AR HARDWARE IS LIMITED TO NICHE USE CASESEXAMPLE AUGMENTED REALITY SMARTPHONE APPLI

264、CATIONS AND TOOLSSNAPCHAT LENSESSOCIAL MEDIAGOOGLE LENSVISUAL SEARCHIKEA PLACESHOPPINGSEPHORAS VIRTUAL ARTISTMAKEUPPOKMON GOGAMESGOOGLE MAPS ARNAVIGATIONCURIOSCOPEEDUCATIONSKIN AND BONES(SMITHSONIAN)3LOCATION-BASEDEXAMPLESAR/VREXAMPLES OF ENTERPRISE-FOCUSED HEADSETS1MICROSOFT HOLOLENS 2REALWEAR HMT-

265、1Price:$3,500Price:$2,520GOOGLE GLASS ENTERPRISE EDITION 2APPLE GLASSPrice:$999Price:?Enterprises are serving as early adopters of AR headsets,due to lower requirements than consumer-grade devices 851.Prices as of Sept.21,2020.Sources:Activate analysis,Ars Technica,Company sitesENTERPRISE AR HEADSET

266、 REQUIREMENTS ARE LOWER THAN THOSE FOR CONSUMER DEVICESCost is less of a concern for enterprisesComfort is less critical for work,as most enterprise applications do not require extended wearStyle matters far less in a job setting than for personal useBattery life can be extended for companies throug

267、h extra batteries/devicesEye fatigue is less of a concern at work,as most enterprise applications do not require extended wear vs.habitual consumer useColor accuracy(e.g.rendering black,chromatic aberrations,etc.)matters less to enterprisesAR/VRHEALTHCAREAid surgeons with precise overlays,give physi

268、cians readily viewable patient information,allow paramedics to monitor vitals hands-free,and improve telehealthHIGHER EDUCATIONAllow students to contextualize complex information,dissect virtual cadavers,and visualize 3D mathematical modelsA number of enterprise applications have already emerged for

269、 AR headsets that allow users to augment additional information,such as surgical overlays and interactive learning 86Sources:Activate analysis,Ars Technica,Company sitesSELECT AR ENTERPRISE APPLICATIONSMANUFACTURINGFacilitate the installation and maintenance of industrial machinery,and assist engine

270、ers with operating and repairing equipmentJOB TRAININGEnable more interactive and safer job training in an easily replicable manner with real-time feedbackAR/VR 871.Perkins Coie Augmented and Virtual Reality Survey 2016(n=653)and 2019(n=200).Respondents consisted of industry professionals.“Industry

271、professionals”include industry executives and founders,advisors,policymakers,investors,and other professionals.Sources:Activate analysis,Company press releases,Company sites,Crunchbase,Perkins CoieEXPECTED INVESTMENT AREAS FOR AR/VR,GLOBAL,2016 VS.2019,%INDUSTRY PROFESSIONALS1M&A AND INTERNAL DEVELO

272、PMENTS BY SELECT LARGE TECHNOLOGY COMPANIESCOMPANYACQUISITIONSINTERNAL DEVELOPMENTSPRIMARY FOCUSAppleNextVR Camerai Spaces Flyby Media Vrvana MetaioApple Glasses(rumored)ARKitConsumerFacebookOculus Scape Technologies Dreambit Sanzaru Games Two Big Ears CTRL-Labs Beat Games Ready at Dawn Zurich EyeFa

273、cebook Reality Labs Oculus headsets(Quest,Rift,Rift S,Go)Facebook AR Spark Consumer&EnterpriseGoogleNorth Owlchemy Labs Phonetic Arts Skillman&Hackett Daydream (discontinued)Google Cardboard Google Glass ARCoreConsumer&EnterpriseMicrosoftAltSpace VRHololens Windows Mixed RealityEnterpriseAmazonNone

274、publicly statedMinor developments(e.g.features to virtually preview products)None Declared(rumored)GamingHealthcareEducationMilitary and DefenseMovies and TVLive EventsReal Estate9%15%17%28%36%43%54%18%34%40%15%30%24%78%20162019Expected investment across AR and VR reflects this growing emphasis on e

275、nterprise however,large technology firms still have an eye on the consumer prize-24%-9%-19%-23%+13%+6%+19%Industry professionals increasingly expect investment to shift towards enterprise-focused applicationsAR Glasses announced(e.g.Project Aria,Luxottica partnership)AR/VRDESCRIPTIONVALUE OF DATACOM

276、PANIES INVOLVEDBIOMETRIC DATAData on facial expressions,body movements,eye tracking(i.e.what a user is looking at)Measures biometric data to leverage for several use cases Build psychographic profiles for targeted ads Track and make health predictions(e.g.dermatology diagnosis)Identify users with ey

277、e-based logins for access control,ID management,and purchasesVirtuleap,Mimerse,Facebook,MagicLeap,MicrosoftVIRTUAL REAL ESTATEDigital layer of information/visuals overlaid on top of real-world locations(analogous to Google Maps in AR)Creates a new advertising channel Generate higher engagement from

278、interactive local ads Improve ad attribution Increase digital ad inventory Facebook,Sony,Samsung,HTC,SnapchatVISUAL SEARCH DATAInformation on real-world items,identified by augmented realty Creates a new marketing and shopping channel Suggest where to buy items to users and learn users design prefer

279、ences Increase engagement with interactive adsGoogle(+Niantic)A significant portion of the value of owning consumer AR/VR is around data,especially for AR companies will need to convince consumers that their privacy will be protected in order to succeed 881.Includes adults aged 18+who have used AR h

280、eadsets for personal use in the last 12 months.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),Company press releases,HubSpot,Shopify,World Economic Forum,ZDNetEXAMPLE DATA TYPES ENABLED BY AUGMENTED REALITYAR HEADSET USAGE1,U.S.,2020,%ADULTS AGED 18+BY DEGREE OF

281、DATA PRIVACY CONCERN3%4%4%8%11%Least Privacy ConsciousMost Privacy ConsciousCompanies selling AR headsets will need to offer data privacy protections to reach the largest audienceThose who care the least about data privacy are roughly 3x more likely to use AR headsets than those who care the most ab

282、out data privacy+AR/VR 89Source:Activate analysisAR/VR:What will determine the winners?AUGMENTED REALITY/VIRTUAL REALITYA robust ecosystem with enough content for users and sophisticated developer toolsConsumer trust in privacy protections(for both wearers and those around them)Affordable price at a

283、 level comparable to smartphones or high-end wearables (e.g.smartwatches)LOGOMature technology that allows for quality visuals,reasonable battery life,and a high degree of mobilityAn attractive form factor that is stylish and light enough to be worn in public(similar to eyeglasses/sunglasses)PRIVACY

284、 ASSURANCECONTENT ECOSYSTEMAFFORDABLE PRICEMATURE TECHNOLOGYATTRACTIVE FORM FACTORAR/VR CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consumers14Gaming:The New Technology Paradigm28Esports:The Mainstrea

285、m Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutionizing the Fan Experience109Sports Betting:$25 Billion for Techno

286、logy and Media Companies127Advertising:Technologys Identity Crisis133PAGEThe COVID-19 outbreak forced the adoption of new technologies for many users 91CONNECTIVITY1.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social distancing measures(

287、i.e.since Mar.2020).Sources:Activate analysis,Activate 2020 Consumer Connectivity&Video Research Study(n=2,123)45%of consumers who use fitness video streaming(e.g.Peloton classes,YouTube yoga videos)tried it for the first time during the COVID-19 outbreak1 bringing the total share of users to 22%80%

288、of consumers who use telemedicine to see a healthcare provider tried it for the first time during the COVID-19 outbreak1 bringing the total share of users to 41%56%of consumers who use a chat service for professional purposes(e.g.Slack)tried it for the first time during the COVID-19 outbreak1 bringi

289、ng the total share of users to 27%59%of consumers who use video conferencing for professional purposes tried it for the first time during the COVID-19 outbreak1 bringing the total share of users to 41%46%of consumers who use video conferencing for social purposes tried it for the first time during t

290、he COVID-19 outbreak1.bringing the total share of users to 54%TELEMEDICINEVIDEO CONFERENCING FOR SOCIAL PURPOSESVIDEO CONFERENCING FOR PROFESSIONAL PURPOSESADOPTION DURING THE COVID-19 OUTBREAK1 BY ACTIVITY,U.S.,2020,%ADULTS AGED 18+CHAT SERVICES FOR PROFESSIONAL PURPOSESFITNESS VIDEO STREAMINGVideo

291、CommunicationsGamingOther3Activate forecasts that video will drive 90%of household data usage growth over the next 5 years,with household data usage nearing 1 Terabyte per month by 2024 92DATA USAGE INCREASE1,U.S.,2015-2019 VS.2019-2024E,CHANGE IN GB PER HOUSEHOLD PER MONTHCONNECTIVITY1.“Data usage”

292、includes both mobile and home internet.Figures do not sum due to rounding.2.“Video”includes online streaming(e.g.Netflix,Amazon Prime)as well as video conferencing(e.g.Zoom,Tele-Education).3.“Other”includes music,social networking,web browsing,and other digital content.Sources:Activate analysis,Coms

293、core,DecisionData,Omdia,Pew Research,PricewaterhouseCoopers133182501.5x1.5x27.0 x0.8x20152019815264721.2x0.9x4.3x0.3xGROWTHUSAGE INCREASE20192024EGROWTHUSAGE INCREASEDrives 90%of consumer data use growthIncreasingly data intensive,but not as much as videoFastest driver of growthACTIVATE FORECASTHOUS

294、EHOLD DATA USAGE INCREASED FROM 190GB PER MONTH TO 475GB PER MONTHHOUSEHOLD DATA USAGE WILL CONTINUE TO INCREASE TO 1,000GB PER MONTH237%38%47%51%52%53%53%54%56%60%40%42%50%55%57%52%62%57%63%65%20192020Consumers indicate that connectivity continues to be a limitation despite efforts to increase spee

295、ds during the COVID-19 outbreak 93CONNECTIVITY AS A REPORTED LIMITATION BY ACTIVITY,U.S.,2019 VS.2020,%ADULTS AGED 18+WHO PARTICIPATE IN EACH ACTIVITYCONNECTIVITYCloud GamingVideo Game Live Streaming1Online Multiplayer GamingVideo ConferencingUploading MediaVideo Sharing2Downloading MediaHigher Defi

296、nition Video StreamingMusic StreamingStandard Definition Video Streaming28%16%HOME INTERNET UPGRADE BEHAVIOR,U.S.,2020,%ADULTS AGED 18+WITH HOME INTERNETUpgraded home internet during the COVID-19 outbreak3(i.e.since March 2020)Plan to upgrade home internet in the next 12 months1.Includes recording a

297、nd broadcasting a live video stream of gaming content via YouTube,Twitch,Mixer,etc.2.This does not include video game live streaming(e.g.Facebook/Instagram Live,Periscope).3.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social distancing m

298、easures(i.e.since Mar.2020).Sources:Activate analysis,Activate 2019 Consumer Tech&Media Research Study(n=4,006),Activate 2020 Consumer Connectivity&Video Research Study(n=2,123)Today,fixed-line broadband remains the primary method for consumer internet connection 94CONNECTIVITY1.Figures do not sum t

299、o 100%due to rounding.Sources:Activate analysis,Activate 2020 Consumer Connectivity&Video Research Study(n=2,123),Federal Communications Commission,Microsoft,Pew ResearchCONSUMERS WITH A SMARTPHONE AND NO FIXED BROADBAND,U.S.,2015-2019,%ADULTS AGED 18+Mobile data through mobile phone 21%Mobile data

300、through tabletHome internet through tablet 7%Home internet through laptop/desktop computer 48%Home internet through mobile phone 20%PRIMARY METHOD OF CONNECTING TO THE INTERNET AT HOME BASED ON TIME SPENT1,U.S.,2020,%ADULTS AGED 18+WITH A HOME INTERNET AND/OR MOBILE DATA PLANWhile the FCC estimates

301、only 21 million U.S.consumers lack broadband access,Microsoft and Pew Research estimate that up to 160 million U.S.consumers are not using internet with broadband level speeds3%2015201620172018201917%20%16%12%13%Already have access to a 5G-enabled phoneWill upgrade as soon as availableWill upgrade t

302、he next time I purchase a smartphoneIntend to have a 5G-enabled phone after 1 upgrade cycle45%28%12%5%17%of consumers who intend to have a 5G-enabled phone after 1 upgrade cycle are willing to pay more for a 5G-enabled smartphone12%of consumers who intend to have a 5G-enabled phone after 1 upgrade c

303、ycle are willing to pay more for a data plan with 5GActivate research indicates that there will be quick adoption of 5G mobile devices,with 45%of consumers intending to have a 5G-enabled phone within an upgrade cycle 955G UPGRADE INTENT,U.S.,2020,%ADULTS AGED 18+CONNECTIVITYSources:Activate analysis

304、,Activate 2020 Consumer Connectivity&Video Research Study(n=2,123)Availability is also a factor for consumersgetting5G devicesBy 2024,roughly 40%of U.S.consumers will use 5G,and mobile data demand will continue to rise;5Gs potential will far outstrip consumer demand alone 96CONNECTIVITYCONSUMER ADOP

305、TION OF CONNECTIVITY STANDARDS,U.S.,2015-2024E,%CONSUMERS WITH A MOBILE DATA PLANDATA USAGE PER MOBILE SUBSCRIBER,U.S.,2019 VS.2024E,GB PER MONTH20%40%60%80%100%20152016201720182019 2020E 2021E 2022E 2023E 2024E4G LTE5G MOBILE2G/3GACTIVATE FORECAST20192024EOTHERVIDEO9GB45GB5xACTIVATE FORECAST5G can

306、support 10 x-100 x faster download speeds and 99.5%lower latency existing consumer use cases will not require nearly this much speed and capacityForecastCOMMUNICATIONSSources:Activate analysis,Activate 2020 Consumer Connectivity&Video Research Study(n=2,123),Comscore,Consumer Technology Association,

307、Counterpoint Research,eMarketer,Ericsson,GSM Association,Omdia,PricewaterhouseCoopers,Statista,U.S.Census Bureau5G will have a great deal more capacity than required for consumer applications,enabling an entirely new set of applications and innovations in IoT,wireless broadband,smart infrastructure,

308、self-driving cars,and autonomous robotics 97CONNECTIVITYFiber to the Curb/Street LightCable or Fiber to the HomeMobile 5GConsumer Wireless BroadbandTransport&RoboticsCable or Fiber to the EnterpriseHD/4K/6K Video Streaming Video Conferencing Online&Cloud Gaming Augmented Reality/Virtual Reality Resi

309、dential IoT Devices Self-Driving Cars Autonomous Public Transport Autonomous DronesEnterprise Wireless BroadbandVirtual Reality Video Conferencing Autonomous Manufacturing Autonomous Robots IoT Monitoring Applications HD/4K/6K Video Streaming Video Conferencing Mobile&Cloud Gaming Augmented Reality/

310、Virtual Reality Wireless Broadband ReceiverWireless Broadband Receiver5G Rooftop Antenna5G Street Light AntennaSources:Activate analysis,Company sites CONTENTS$375 Billion Global Technology and Media Growth Dollars up for Grabs4Consumer Technology and Media Time and Attention8Super Users,Super Consu

311、mers14Gaming:The New Technology Paradigm28Esports:The Mainstream Sport of the Future46Video:The Fight for Battleground Households60AR/VR:On the Verge of Widespread Adoption74Connectivity:Intensifying the Need for Speed90eCommerce:Accelerating Five Years in Five Months98Sports&Sports Tech:Revolutioni

312、zing the Fan Experience109Sports Betting:$25 Billion for Technology and Media Companies127Advertising:Technologys Identity Crisis133PAGE2020E2024E$26$23Global eCommerce will reach$6.5T in 2024,growing by over 13%CAGR;nevertheless,physical retail will continue to grow(recovering from a severe decline

313、 in 2020)99RETAIL SALES BY CHANNEL1,GLOBAL,2020E VS.2024E,TRILLIONS USD1.Figures do not sum due to rounding.Excludes travel and tickets and other services(e.g.food service and gambling).Sources:Activate analysis,eMarketer,Forrester,National Retail Federation,Research and Markets,U.S.Census Bureau,U.

314、S.Department of Commerce$22.5TCAGR:13%$27.9TCAGR:4%eCommerce Share of Total Retail Sales18%23%2020E-2024E CAGR:6%FORECASTACTIVATEeCommercePhysical Retail$2.9T$18.5T$21.4T$4.0T$2.4T$6.5TECOMMERCETwo thirds of the global eCommerce transaction volume is concentrated within the top 6 players;most import

315、antly,these are largely marketplaces vs.online retailers 100ONLINE GROSS MERCHANDISE VOLUME(GMV)1,GLOBAL,2019,%TOTAL GMV1.Excludes the combination of individual merchants using eCommerce enablement platforms(e.g.Shopify).2.Each company accounts for between 0.5%and 2%of the total GMV.Sources:Activate

316、 analysis,Company filings,Company press releases,Company sites,Digital Commerce 360,eMarketerRest of the WebPINDUODUO2019 TOTAL GLOBAL ONLINE GMV:$3.4T5%23%4%9%13%14%15%37%of the GMV for the top 6 eCommerce players is from marketplace sales Over 50%ECOMMERCEThe COVID-19 outbreak has dramatically acc

317、elerated the trajectory of eCommerce in the U.S.,with the growth rate reaching 32%in 2020;this will be sustained at around 12%in the coming years 101TOTAL ECOMMERCE RETAIL SALES AND ANNUAL GROWTH1,U.S.,2014-2024E,BILLIONS USD/%ANNUAL GROWTH1.Excludes travel and tickets and other services(e.g.food se

318、rvice and gambling).Sources:Activate analysis,eMarketer,Forrester,National Retail Federation,Research and Markets,U.S.Census Bureau,U.S.Department of Commerce2014201520162017201820192020E2021E2022E2023E2024E$1,227B$1,098B$979B$872B$788B$599B$521B$461B$397B$340B$298BeCommerce Retail SalesAnnual Growt

319、h Rate14%14%17%16%13%15%32%11%12%12%12%While future annual growth is not expected to reach 2020 levels,the overall trajectory of eCommerce has been adjusted upwards vs.previous estimates2020E2024E CAGR:12%Growth in eCommerce retail sales more than doubled in 2020ECOMMERCEFORECASTACTIVATEClothing,sho

320、es,accessoriesGroceryHousehold products3Beauty and personal careConsumer media4Electronics5Home improvement and decorToys and gamesAuto partsFurnitureSporting goodsJewelryStrong U.S.eCommerce growth is supported by high levels of penetration across product categories,led by clothing,grocery,househol

321、d products,and beauty/personal care 102ECOMMERCE PENETRATION1 DURING THE COVID-19 OUTBREAK2 BY PRODUCT CATEGORY,U.S.,2020,%ADULTS AGED 18+24%25%26%27%31%34%35%38%50%52%55%56%Categories with historically weak eCommerce performance such as auto parts and jewelry have seen strong penetration during the

322、 COVID-19 outbreak1.“Penetration”is defined as those who indicated that at least 10%of their purchases in the category were online.2.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.since Mar.2020).3.“Household

323、products”include cleaning supplies and paper towels.4.“Consumer media”includes CDs,books,DVDs,and video games.5.“Electronics”include mobile phones and gaming consoles.Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)ECOMMERCE22%27%27%43%33%34%30%19%67%66%70%81%Expec

324、t to continue purchasing online from the new retailer(s)in the next 6 monthsDo not expect to continue purchasing online from the new retailer(s)in the next 6 monthsPurchased online from a new retailer that they have never purchased from before the COVID-19 outbreakGroceryDuring the COVID-19 outbreak

325、,many customers purchased from eCommerce retailers that they had not purchased from before most indicate that they are likely to continue shopping at these new retailers 103CONSUMER ONLINE PURCHASING BEHAVIOR FROM NEW RETAILERS1 DURING THE COVID-19 OUTBREAK2,U.S.,2020,%ECOMMERCE PURCHASERS3 BY PRODU

326、CT CATEGORY/%ECOMMERCE PURCHASERS FROM NEW RETAILERS BY PRODUCT CATEGORY1.“New retailers”refer to retailers that the consumer had never purchased from before the COVID-19 outbreak.2.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social dist

327、ancing measures(i.e.since Mar.2020).3.“eCommerce purchasers”refer to adults aged 18+who have purchased at least one item in the product category online during the COVID-19 outbreak.4.“Before the COVID-19 outbreak”refers to the period before the start of the COVID-19 outbreak and subsequent social di

328、stancing measures(i.e.before Mar.2020).Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003)Clothing,Shoes,AccessoriesHousehold Products Beauty and Personal CareACROSS PRODUCT CATEGORIES,THOSE THAT PURCHASED ONLINE FROM A RETAILER THAT THEY HAD NOT PURCHASED FROM BEFORE

329、 THE COVID-19 OUTBREAK ARE LIKELY TO CONTINUE PURCHASING FROM THAT RETAILER4ECOMMERCE201820192020E2021E2022E$74B$65B$59B$36B$23BFollowing the COVID-19 outbreak,buy online,pick up in-store will be important to sustain eCommerce growth,especially in grocery 1041.“During the COVID-19 outbreak”refers to

330、 the period since the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.since Mar.2020).2.“Other retailers”do not include pharmacies.Sources:Activate analysis,eMarketer,QudiniTOTAL“BUY ONLINE,PICK UP IN-STORE”SALES,U.S.,2018-2022E,BILLIONS USDLIKELIHOOD OF USING“BUY ONLINE

331、,PICK UP IN-STORE”DURING THE COVID-19 OUTBREAK1,U.S.,JUNE 2020,%ADULTS AGED 16+LESS LIKELYEQUALLY LIKELYMORE LIKELYConsumers are more likely to use“buy online,pick up in-store”for grocery than other retailer types during the COVID-19 outbreak Other RetailersGrocery Stores8%13%24%37%68%50%20182020E C

332、AGR:58%2020E2022E CAGR:13%2ECOMMERCE Grocery was one of the primary beneficiaries of accelerated eCommerce growth in 2020,the number of online grocery purchasers reached the level previously not expected until 2024 105ONLINE GROCERY PURCHASERS1,U.S.,2018-2024E,MILLIONS PURCHASERS AGED 18+1.“Online g

333、rocery purchasers”refer to consumers who have made at least one grocery order online,including buy online,pick up in-store.”2.“During the COVID-19 outbreak”refers to the period since the start of the COVID-19 outbreak and subsequent social distancing measures(i.e.since Mar.2020).Sources:Activate analysis,Activate 2020 Consumer Tech&Media Research Study(n=4,003),eMarketer,U.S.Census BureauDRIVERS O