HOW 5G WILL TRANSFORM THE BUSINESS OF MEDIA 5G will add an extra $100bn to annual mobile display advertising revenues by 2028 ($35bn in the US). This will correspond to a net cumulative growth of more than half a trillion dollars in the next 10 years ($280bn in the US). The advertising market will benefit from incremental usage of services such as video, the emergence of new immersive formats enabled by 5G, and resulting social integrations. The best way to prepare is to participate in early experimentations with 5G, not necessarily to get first-mover advantage, but rather to understand what is achievable and be ready to move in at the right moment. Entertainment you can feel offers tremendous opportunities for the media industry in the long term. Haptic suits connected to 5G will be able to deliver a new sensory dimension to media experiences. For instance, new sensations such as heat and pressure could be bundled into a weapons upgrade in an action game, or movies could be re-released with a new sensation layer, opening a new monetization cycle across old catalogs. New media experiences to be enabled by 5G such as in-car entertainment, 3D holographic displays, and live in-stadium experiences are all set to bring in a cumulative $43bn in the next 10 years ($23.5bn in the US). In all cases, 5G will bring fans and their idols closer, something to be considered as of great value to consumers. New immersive interactive experiences will be unlocked by 5G. AR, VR, and cloud gaming combined will grow nearly 2,400% in the next 10 years to reach yearly revenues of $47.7bn in 2028 ($8bn in the US). The cumulative revenue contribution from 5G over the forecast period will be $142bn globally ($32bn in the US). 5G will benefit from a perfect storm expected around 202325, when hardware and network capabilities will help realize VR experiences that are close to reality. Human-scale 210-degree horizontal field of vision, six degrees of freedom for movement, high pixel-density display/projection resolution, miniature battery size, and highly responsive interaction are some of the elements that are required to reach this inflection point. Mobile edge computing will be key. These experiences won't be achievable solely through stand-alone hardware and will require some of the computational power to be executed remotely on the network. Mobile edge computing (MEC) capabilities that 5G will feature will be key. On the content side, there will need to be an ecosystem around 3D volumetric content creation, management, and distribution, which is already emerging today (e.g., Intel Studios, Microsoft Mixed Reality Capture Studios). How 5G will transform the business of media & entertainment 07How 5G will transform the business of media & entertainment 08 How 5G will transform the business of media & entertainment 08 SOURCE: OVUM TABLE 1: 5G KEY OPPORTUNITIES AND IMPACT TRANSFORMATIONAL IMPACT NEW BUSINESS MODELS NEW ADVERTISING FORMATS AND MEASUREMENT Transitioning traditional banner-based advertising to moving images, video especially. Digital and social advertising transformation integration and customization with immersive experiences. Real-time dynamic measurement of ad effectiveness through eye tracking, biometrics, etc. New ad formats in AR and VR. New ways to monetize engagement and interaction brought by AR, VR, and haptics. Less-intrusive ads mean more opportunity for ad-supported premium services (e.g., ads in Netflix). EMPOWERED GAMING EXPERIENCES 5G AR gaming will be very large (>90% of all AR revenues). 5G-reduced lag to unlock cloud gaming on mobile. Haptic suits and VR to transform gaming experience. Virtual objects to be used in games for AR and VR. Network-dependent gaming experiences such as cloud gaming more likely to push subscription models. Pay per sensation/feel on haptic suits. VIRTUAL ENVIRONMENTS AS NEW MEDIA CHANNELS An entirely new way for consumers to interact with content. Engagement levels to be much higher because of immersion. Create a real connection between artist and fan. Virtual items can be bought via in-app transactions or bundled in with digital media purchases (e.g., movie, music video). Highly valued engagement could be priced on a per event or per minute basis for celebrities. New advertising formats. A NEW SENSORY DIMENSION TO ENTERTAINMENT Haptic suits combined with high responsiveness of 5G network will bring touch sensation over the internet. Realistic immersion when combined with high quality VR. A new sense means an entirely new way to monetize entertainment. Different levels or sensations could be unlocked for different price tiers. IN-CAR ENTERTAINMENT Driverless cars to bring new context in which to enjoy entertainment set to generate an aggregate $19.5bn in the next 10 years. Americans spend on average 293 hours per year driving, according to the AAA Foundation for Traffic Safety. “Car“-hold dual-play. Home entertainment subscription for the-car. Our survey data shows that consumers are likely to pay more for in-car entertainment than for mobile entertainment.