5G promises to shake-up a host of industries, including media and entertainment companies, which stand to reap revenues from new experiences in VR/AR and gaming, and yet-to-be-imagined applications, according to a new study from Intel.
The study, 5G Economics of Entertainment Report, found the next generation of wireless connectivity will drive $1.3 trillion in new revenues in the media and entertainment industry by 2028.
5G will quickly surpass 3G and 4G, according to the report, in less than a decade representing nearly 80 percent of total wireless media revenues or $335 billion.
Enhanced gaming and new experiences and services provide opportunities for media and entertainment companies to capture a share of a nearly $3 trillion cumulative wireless revenue opportunity over the next 10 years.
The Intel study found 5G will create more than $140 billion cumulative revenues for AR and VR between 2021 and 2028. Applications and services that have not even emerged yet also hold potential.
“Immersive and new media applications – applications and capabilities that are currently nonexistent – will reach unprecedented scale by 2028, forecast to generate more than $67 billion annually or the value of the entire current global mobile media market – video, music and games – in 2017,” the study says.
Average monthly traffic per 5G subscriber will also jump from 11.7 GB in 2019 to 84.4 GB per month in 2028. By then, video is forecast to make up 90 percent of all 5G traffi.
“Evolved 3G and 4G networks would offer a degraded experience because the capacity will be insufficient to handle the increased video viewing time, content evolution to higher resolutions, more embedded media and immersive experiences,” Intel said.
5G is also forecast to “supercharge” the digital advertising market, helping to overcome scale, delivery, and measurement challenges for mobile ad campaigns. The study, conducted by Ovum, found mobile display advertising will have a market of $178 billion globally by 2028, with 5G playing a vital role in shifting traditional advertising toward social and media immersive experiences.
“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 at Ovum, in a statement.