5G to Pump $1.3 Trillion Into Media & Entertainment By 2028 – Intel/Ovum Study
SANTA CLARA, Calif. -- According to the newly released “5G Economics of Entertainment Report” commissioned by Intel and conducted by Ovum, it is forecast that over the next decade (2019-2028) media and entertainment companies will be competing to win a share of a near $3 trillion cumulative wireless revenue opportunity. Experiences enabled by 5G networks will account for nearly half of this revenue opportunity (close to $1.3 trillion).
Why 2025 is the 5G Tipping Point: The report says that as early as 2025, 57 percent of global wireless media revenues will be generated by using the super-high-bandwidth capabilities of 5G networks and the devices that run on 5G. The low latency of these networks means that no video will stall or stop – livestreaming and large downloads will happen in the blink of an eye. The report points to the following breakouts in revenue as 5G networks overtake 3G and 4G by offering new capabilities:
- 2022: nearly 20 percent of total revenues – $47 billion of $253 billion
- 2025: more than 55 percent of total revenues – $183 billion of $321 billion
- 2028: nearly 80 percent of total revenues – $335 billion of $420 billion
How Media Demand Drives Network Evolution: The “5G Economics of Entertainment Report” forecasts that 5G will accelerate content consumption, including mobile media, mobile advertising, home broadband and TV, and improve experiences across a broad range of new immersive and interactive technologies – unleashing the full potential of augmented reality (AR), virtual reality (VR) and new media.
The average monthly traffic per 5G subscriber will grow from 11.7GB in 2019 to 84.4GB per month in 2028, at which point video will account for 90 percent of all 5G traffic.
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 Corp. (Nasdaq: INTC)