According to a newly release report commissioned by Intel and conducted by Ovum, it is forecast that over the next decade media and entertainment companies will be competing to win a share of a near $3 trillion (USD) cumulative wireless revenue opportunity. Those experiences that leverage 5G wireless networks will account for nearly half of this revenue opportunity as the future for the technology seem bright.
The report, titled “5G Economics of Entertainment Report”, says that by the year 2025 that 57 percent of global wireless media revenues will be generated by using the super-high-bandwidth capabilities of 5G networks and the devices that use it. Thanks to the low latency of these networks, users will not have to worry about videos stopping or stalling during playback with livestreaming and larger downloads happening more effective and in the blink of an eye.
“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.” Explains 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?”
One of the main focus points for the report is the revenue that will be generated as 5G networks overtake 3G and 4G networks by offering new capabilities. According to the report, by the year 202 nearly 20 percent of total revenues will be from 5G, which is around $47 billion of $253 billion. By the year 2028 it will be an impressive 80 percent of total revenues making it $335 billion of $420 billion.
The report also forecasts that 5G networks wil accelerate content consumption, including mobile media, mobile advertising, home broadband and TV, along with improving experiences across a broad range of new immersive and interactive technologies. This will mean that the full potential of augmented reality (AR), virtual reality (VR) and new media will be unlocked thanks to the capabilities of 5G networks along with the possibility of wireless 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, Ovum.
For more on 5G networks and how they will benefit all things AR and VR in the future, keep reading VRFocus.