Global media and entertainment industry will generate revenue of $1.3 trillion from 5G by 2028, according to a report by Intel and Ovum.
Companies in this industry are expected to win a share of around $3 trillion from wireless services. This shows that 5G technology alone will account for nearly half of this revenue opportunity.
The report, titled ‘5G Economics of Entertainment’, has been commissioned by Intel and conducted by Ovum.
Next generation of media and entertainment will not only depend on the content that companies create, but also on the way customers access and interact with it. The data related to customer preferences, habits, locations and more will rapidly increase. Companies will need to use this data and improve customer experience.
5G, the fifth-generation network, will make the things easier for media industry to provide customers a seamless way to access content. 5G will enable low latency networks, which means that videos will never stop. Customers will have livestreaming experience and download large files in the blink of an eye.
Key findings of ‘5G Economics of Entertainment’ report by Intel:
5G will contribute to 57% of total wireless media revenues
The report highlights that 2025 will the tipping point for media industry, where 57% of wireless media revenues will be generated by 5G-enabled experiences.
With the time, 5G will overtake the current 4G and 3G networks. Intel said that 5G will account for nearly 20% of total revenues by 2022. As the technology reaches 2025, it will account for over 55% of total revenues. Further, by 2028, it will drive around 80% of the total revenues.
“5G will inevitably shake up the media and entertainment landscape. It will be a major competitive asset if companies adapt. If not, they risk failure or even extinction,” said Jonathan Wood, general manager of Business Development & Partnerships, 5G Next Generation and Standards at Intel.
“This wave of 5G transformation will not be the purview of any singular industry, and now is certainly the time for all business decision-makers to ask: Is your business 5G-ready?”
90% of mobile data traffic will be video
5G will increase the content consumption over the next ten years. The increased content consumption will cover mobile media, mobile advertising, home broadband and TV.
On average, the monthly data traffic of a 5G subscriber will increase from 11.7GB in 2019 to 84.4GB in 2028. Around 90% of 5G traffic will be consumed by videos.
5G will bring new dawn of AR/VR-driven experiences
5G technology will improve experiences for modern immersive and interactive technologies like augmented reality (AR) and virtual reality (VR). 5G-enabled AR/VR will generate over $140 billion in cumulative revenues between 2021 and 2028, reveals the report.
People will have a new way to interact with media using virtual characters, virtual items, and augmented contextual information. Content creators will get a new channel to reach their fans.
Intel and its partners will deliver end-to-end 5G technologies and services, to enable the future of digital content from the network, through the cloud, to the device.
“The big question is: What will not be impacted or disrupted by 5G? The next generation wireless network will power diverse digital innovation – everything from the computerization of physical objects to artificial intelligence, ushering in an exciting new world that business leaders and indeed nations need to prepare for,” said Ed Barton, chief analyst of the Entertainment Practice, Ovum.