Kleiner Perkins Caufield & Byers partner Mary Meeker delivered her annual Internet trends report at last week’s Code Conference in California. This year’s presentation featured 355 slides and a new section on healthcare. Among the key takeaways: global Internet users reached 3.4 billion in 2016 (46 percent of the world’s population, more than double the number from 2009); digital advertising jumped 22 percent to $73 billion; worldwide smartphone growth is slowing; China is the new leading market for interactive gaming; Apple, Alphabet, Amazon and Facebook are collectively worth $2.4 trillion, while seven of the next 16 top tech firms are Chinese companies such as Alibaba and Tencent.
“Smartphone shipments grew 3 percent year over year last year, versus 10 percent the year before,” notes Recode. “This is in addition to continued slowing Internet growth, which Meeker discussed last year.” However, the number of Internet users jumped more than 28 percent in India.
Use of voice tech is on an upswing; 20 percent of last year’s mobile queries were made by voice rather than text. The tech is also improving, with accuracy at roughly 95 percent.
“In 10 years, Netflix went from 0 to more than 30 percent of home entertainment revenue in the U.S.,” adds Recode. “This is happening while TV viewership continues to decline.”
VentureBeat lists some additional key takeaways:
- The amount of money spent on digital ads will surpass spending on TV ads sometime in the next six months.
- E-commerce growth is also accelerating. Credit Amazon, of course, but Walmart is also seeing new online growth in the wake of its purchase of deep-discount site Jet.com. Meanwhile, physical retailers are expected to close nearly 1,700 shops in the U.S., the largest number in 20 years.
- There are 2.6 billion gamers around the world, up from 100 million in 1995. The gaming industry generated $100 billion in global revenue last year, with nearly half of that, $47 billion, coming from Asia. Games … may be preparing society for the rise of human-computer interaction.
- The Internet has not been kind to the music recording industry. For the past 16 years, [music industry] revenue has declined by an average of 4 percent a year. Last year, overall music revenue grew by 11 percent to more than $12 billion, its highest figure since 2009. Subscription and streaming revenue made up more than half of the total figure for the first time.