5G market will create trillion-dollar potential for media industry
Media and entertainment companies will be competing to win a share of a near-$1.3 trillion (£1.02tn) wireless revenue opportunity created by 5G over the next 10 years. That’s according to the 5G Economics of Entertainment Report commissioned by Intel and conducted by Ovum.
The report forecasts that 5G will accelerate content consumption in areas including mobile media, mobile advertising, home broadband and TV, and help achieve the full potential of augmented reality (AR), virtual reality (VR) and new media.
It predicts that average monthly traffic per 5G subscriber will grow from 11.7GB next year to 84.4GB per month in 2028. At this point, video will account for 90 percent of all 5G traffic.
Intel 5G and standards general manager Jonathan Wood said: “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.
“This wave of 5G transformation will not be the purview of any singular industry. Now is certainly the time for all business decision-makers to ask: is your business 5G-ready?”
Revenue growth
The report predicts that 5G will generate more than half of global wireless media revenues by 2025, with livestreaming and large downloads happening “in the blink of an eye”.
Applications and capabilities that haven’t even been invented yet will generate more than $67 billion annually, equivalent to the value of the entire current global mobile media market of video, music and games.
Ovum chief analyst of the entertainment practice Ed Barton said: “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.”