5G: Changing the future of Media and Entertainment, Leading New Revenue Streams for Telcos
By Media Entertainment Tech Outlook | Tuesday, August 13, 2019
5G technology continues to impact the media and entertainment industry by crafting the best of the experiences with Virtual Reality (VR) and Augmented Reality (AR) capabilities.
FREMONT, CA: The digitalization trend is altering the workings of the media and entertainment industry. The next major development is coming in the form of 5G network connectivity, transforming many of the industry's basic elements. Although extremely unpredictable, the way content is developed and propagated is sure to change. Consumers and creators will both see substantial disruptions. No one doubts that implementing 5G as the latest digital wireless service standard will alter the industry and make telco giants more competitive with broadband cable. So how will 5G in the next century transform media and entertainment? Here are a few impacts of 5G on the sector.
5G will affect media consumption as a result of substantial technical improvements in transmission speed, quality, and reliability, driving content innovation. Transmission Speed: Download speeds are bound to be at least tenfold higher than 4G, and it could be up to 100 fold for true 5G norms. So if it takes six minutes for an HD movie to download in a 4G network, it might take a few seconds with 5G. These drastic improvements in velocity, quality, and reliability during media consumption will result in radical developments in premium content, such as dedicated sports channels for virtual reality and mobile multiplayer games. Also, photo and video upload speeds will enhance in the age of user-generated content, fueling content on social media.
Value Chain effects
During the internet era, distributing content is more straightforward and less expensive, so top content creators and owners have enjoyed a favorable value chain position to capture earnings and margins. Content is considered as the kingmaker by many specialists in the sector. But with 5G, in favor of distribution, the power will tilt back. 5G suppliers will own the most fertile soil for best content distribution, and content providers will have to pay the cost. 5G network companies will soon gain market power at the cost of broadband cable suppliers.
Financial transaction costs can shed light on how the demand and conduct of consumers will change. Right now, due to the high price and ownership delays, streaming is preferred. Downloading a film for an HD version can cost about $15 to $20. It can cost up to $1 to download a song. Renting or streaming content economics is favorable, particularly for content that we only eat once. In terms of delays, downloading content is on the losing end in a culture of impatience because streaming occurs quicker. But with 5G, that will alter. Looking at the economy of the value chain of the industry and consumer behavior, we can predict that 5G will lead to significant content development, a transition to live to stream, and a download revival.
5G's power is ready to revolutionize the media and entertainment sector by enabling the development and consumption of new kinds of material and by opening up current markets to fresh players. Like past revolutions in content delivery, the 5G era benefits are likely to flow to those readiest to adopt the possibilities offered by the latest technology. 5G has already become a beacon for the industry's new technology and is committed to doubling income over the next decade. This is just the icing on the cake, and as often happens in technological transformations, many other 5G impacts are to hit the reality.