The 5G network took to the grand stage at CES, MWC, and NAB events earlier this year, confirming its significant potential to enhance the business models for both the telecom as well as the media and entertainment industry. For us, the 5G revolution will augment the outcomes around greater speed, global coverage, gesture-based interactive media, growing sources for revenues and gamified experiences, providing us with an enhanced future.
5G revolution will augment the outcomes around: greater speed, global coverage, gesture- based interactive media, growing sources for revenues and, gamified experiences, providing us with an enhanced future.
According to Ovum, the global media industry stands to gain $765bn in cumulative revenues from new services and applications enabled by 5G wireless structures ($260bn in the US and $167bn in China). Thanks to the new network capabilities brought forward by 5G technology, annual mobile media revenues will double in the next 10 years to $420bn in 2028 ($124bn in the US). The transformative impact of 5G technology will not only enhance the mobile phone user experience, but it‘ll be a bigger disrupter for the media and entertainment conglomerates on many levels with new business models and new immersive interactive experiences to capitalize on. Video, gaming, music, advertising, AR, and VR will all see fundamental changes due to 5G, bringing content and audiences closer. Ultimately, we expect 5G networks to help bring a new, tactile dimension to the entertainment business.
Ovum suggests that companies will experience varied technical advantages of 5G – ‘data speeds will be 100x’ times faster than 4G, with ‘10x times lower latency’, ‘100 times more network capacity’, and significantly more reliable connections. Earlier, an HD movie used to take several minutes to download at 4G speed, but with the intervention of 5G networks, users can potentially download the same movie in just a few seconds because of much lower 5G latency.
This alone will impact content consumption and production models in a huge way. The users will start consuming the content faster, thereby increasing the demand for content and products in the market, and traditional content creators will be in a race against time, creating more content to satisfy the rising demand. Video is, in fact, expected to account for 90% of 5G data traffic, as indicated by Ovum in their Ovum-Intel 5G e-book. But, the high speeds of 5G wireless will also combine with 5G’s capacity and reliability improvements, along with improved 5G latency, to facilitate entry of new competitors and new business models for new and old competitors alike.
HOW 5G WILL TRANSFORM THE BUSINESS OF MEDIA & ENTERTAINMENT
While technical enhancements will change the very facet of the media and entertainment business models, the different 5G network elements will be combined with virtualization and new architectures. This will generate new services along with creating demand for new devices at a greater level. The diagram below explains the 5G technologies and some of their underlying elements, which will augment the outcome for business models, unlocking newer applications, and different business models.
The 5G network promises to revolutionize not just video but the entire ecosystem of connected devices.Source: Ovum
5G will certainly shake up the media and entertainment landscape. Media conglomerates who will be early adopters of 5G technology will have a competitive advantage over other companies. This wave of 5G transformation will also bring in new approaches that combine other technologies with 5G, like a “5G plus” structure, such as 5G plus AI/ML and 5G plus IoT among others. This new landscape is still forming. Standards aren’t fully evolved yet and organizations are making different bets on what type of 5G they’ll have and the kind of applications the technology will liberate.
With this purview, now is certainly the time for all business decision-makers to ask: Is your business 5G-ready?