Intel Study Finds 5G will Drive $1.3 Trillion in New Revenues in Media and Entertainment Industry by 2028
October 11 2018 - 10:00AM
Business Wire
What’s New: 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).
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Within a decade, the global media
industry stands to gain $1.3 trillion from 5G, according to the “5G
Economics of Entertainment Report” commissioned by Intel and
conducted by Ovum. (Credit: Ovum/Intel Corporation)
“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,
and now is certainly the time for all business decision-makers to
ask: Is your business 5G-ready?”-- Jonathan Wood, general manager
of Business Development & Partnerships, 5G Next Generation and
Standards at Intel
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.
Forecast to provide $140 billion in cumulative revenues
(2021-2028), expanded AR and VR experiences may also enable a whole
new channel for content producers to reach consumers.
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.
How Businesses are Tuning in to 5G: Beyond media and
entertainment, all industries are having to adapt to disruptive
changes in the business environment, consumers’ habits and public
expectations. Businesses are trying to imagine how 5G will
transform and disrupt their industry, society and even global
competitiveness, as well as beginning to formulate their strategy
to embrace the capabilities of 5G. Without the promise of what 5G
can provide, growth in many industries may remain stagnant or even
decline.
When 3G wireless networks launched, no one could have predicted
how the mobile world would look today. 4G in the U.S. spawned
entire new industries. Companies like Airbnb*, Uber*, Netflix* and
Spotify* may not have been possible without 4G technology.
“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.
What It Means to Intel: 5G networks will provide lower
latency (to be more responsive), greater speeds (to move the
increasing volumes of data we produce), and the ability to expand
beyond computers and phones to encompass the cloud and a whole new
universe of devices (estimated in the billions) attached to the
network. Intel is uniquely positioned to power the entire 5G tech
ecosystem to support this flood of new data.
Intel is no longer just “inside” your computer; Intel’s
technological innovation is expanding to 5G network, consumer and
industrial applications and the cloud.
More Context: E-Book: How 5G will Transform the
Business of Media & Entertainment |
Infographic: Immersive 5G Experiences Start and End with
Intel | Infographic: 2025: The 5G Tipping Point |
Press Kit: 5G at Intel | Intel.com: Intel 5G:
Network. Cloud. Client.
About Intel
Intel (NASDAQ: INTC) expands the boundaries of technology to
make the most amazing experiences possible. Information about Intel
can be found at newsroom.intel.com and intel.com.
Intel and the Intel logo are trademarks of Intel Corporation in
the United States and other countries.
*Other names and brands may be claimed as the property of
others.
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IntelAlison Evans, 415-307-7817alison.a.evans@intel.com
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