The 5G networks that are just coming online in the U.S. will offer up about $1.3 trillion in revenue opportunities for media and entertainment companies over the next decade.
That’s according to Intel and a new study the company commissioned from Ovum. From 2019 to 2028, media and entertainment companies can expect an influx of about $3 trillion in revenue from wireless, and nearly half of that will be enabled through 5G.
“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,” said Jonathan Wood, general manager of Business Development and Partnerships, 5G Next-Generation and Standards at Intel, in a statement.
Intel said the tipping point will hit around 2025 when about 57% of all wireless entertainment revenue opportunities will stem from 5G networks. By 2028, that percentage will grow to 80% as 5G networks push forward emerging media formats such as augmented reality and virtual reality.
The company said immersive and new media applications will scale significantly by 2028 and are forecast to generate more than $67 billion annually—or the value of the entire current global mobile media market including video, music and games in 2017.
“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.