Media and entertainment companies will generate revenue of $1.3tn (£1tn) from experiences enabled by 5G networks within the next decade, according to a report by Intel and Ovum.
The 5G Economics of Entertainment Report says that next generation connectivity is expected to accelerate content consumption – including mobile media, mobile advertising, home broadband and TV – and unlock the full potential of augmented and virtual reality as well as new applications and capabilities that don’t yet exist.
As early as 2025, 57% of global wireless media revenues are expected to be generated by the super-high-bandwidth capabilities of 5G networks and the devices that run on 5G.
Thanks to the low latency of 5G, no video will stall or stop, allowing live streaming and large downloads to happen in the blink of an eye. The average monthly traffic per 5G subscriber is predicted to grow from 11.7GB in 2019 to 84.4GB per month in 2028, at which point video will account for 90% of all 5G traffic.
“5G will inevitably shake up the media and entertainment landscape,” commented Jonathan Wood, general manager of Business Development & Partnerships, 5G Next Generation and Standards at Intel. “It will be a major competitive asset if companies adapt. If not, they risk failure or even extinction.”
“The big question is: what will not be impacted or disrupted by 5G?” added Ed Barton, chief analyst of Ovum’s Entertainment Practice. “The next generation wireless network will power diverse digital innovation – everything from the computerisation of physical objects to artificial intelligence, ushering in an exciting new world that business leaders and indeed nations need to prepare for.”