Revolutionizing Next-Generation Entertainment: Exploring the 5G & Metaverse Opportunity for Telcos, Media, and Tech Industry

5G and the Metaverse are megatrends, presenting both a challenge and an opportunity for the telco, media and tech industry. This post explores the multifold benefits for tech, telcos and media companies, from leveraging infrastructure to building new business models to capturing downstream value through active participation in the 5G Metaverse with innovative consumer entertainment offering

This is the follow up post regarding how telcos and Media companies can use their strengths to build leadership positions in next-generation entertainment, based on creating partnerships with tech and satcom innovators in the ecosystems.

One of the most exciting trends in the industry today is the rise of the metaverse, a virtual world that is accessible through the internet and inhabited by millions of people in the form of avatars. While the concept of the metaverse has been around for decades, recent advancements in technology, particularly 5G, are bringing us closer to realizing its potential.From the perspective of consumer entertainment, the gaming industry is leading the way in creating more immersive and engaging experiences within the metaverse. However, the potential for next-generation entertainment goes beyond gaming. Telcos and media companies must recognize this and position themselves for success in the evolving landscape.

Over the last few years I have worked with numerous companies in the telecoms and media space. From my experience, I can say that those who are willing to adapt and partner with innovators in their ecosystems are the ones who will thrive in the evolving landscape of next-generation entertainment.

5G Advancements Pave the Way for a Multi-Billion Dollar Metaverse Business Opportunity in Consumer Entertainment

The Metaverse represents a multibillion-dollar opportunity. The demand for data, and thus revenues, will increase rapidly. Depending on quality, the average virtual reality (VR) Metaverse user requires five to 40 times more bitrate than it takes to stream an HD video. In addition to the challenge of ultra-low-latency requirements, global network infrastructure requires overhauling to bring the Metaverse into consumers’ homes. Telcos are already spending heavily on such initiatives, and mobile carriers may be expected to invest as much as $720 billion globally on network upgrades between 2022–2025, according to GSMA Intelligence, of which $527 billion will be spent on 5G networks. Meanwhile, Arthur D. Little (ADL) estimates that $88 billion will be spent on fiber upgrades in the European Union alone from 2022–2030. These estimated investments offer only a snapshot of a dynamic environment and do not consider every possible use case.

From the perspective of consumer entertainment, the path to the future metaverse is currently rooted mainly in gaming. Video games have always been at the forefront of technology innovation, pushing the limits of what is possible with each new iteration. Today, games are more immersive than ever, with stunning graphics, lifelike physics, and intricate game mechanics that provide hours of engaging entertainment.

However, the gaming industry is not content to rest on its laurels. Instead, it is leading the charge towards the metaverse, leveraging emerging technologies such as 5G to create more immersive and engaging experiences. 5G networks, with their ultra-low latency and high bandwidth, provide the backbone for these new experiences, allowing for real-time interactions between players and creating a more seamless and immersive gaming environment.

One example of how 5G is enhancing gaming experiences is through cloud gaming. With cloud gaming, players can stream games directly to their devices, without the need for a high-end gaming PC or console. However this is not the only use case.

Revolutionizing Entertainment with the Full Potential of Today’s 5G Technology

With greater bandwidth, fast connections, and mass connectivity, 5G is poised to deliver next-level media services and experiences that will change the game for content creators and audiences alike. This vastly improved mobile broadband will enable media companies to revolutionize the content supply chain and deliver vastly improved mobile experiences compared to 4G. As 5G’s new capabilities are phased in, whole new content possibilities are unlocked, such as ultra-high quality video streaming with super-fast downloads and uploads on the go.

But that’s not all. 5G’s reliable, predictable end-to-end connectivity with ultra-low latencies is critical for live action, gaming, and interactive media. It will provide audiences with unprecedented levels of immersion and interactivity for live events.

Mass connectivity is another defining attribute of 5G, allowing more devices to connect to the internet in a given area at the same time. This is ideal for densely populated places, such as major events, where connectivity can be a challenge. With 5G, fans will have limitless opportunities to interact with the action, each other, and the talent.

However, 5G isn’t just about delivering better experiences for audiences. It also has the potential to transform the way media is produced and distributed. Remote production for multiple platforms is now a reality, driving creative freedom and efficiencies that were previously impossible.

With 5G’s richer, personalized, and hyper-relevant brand experiences, driven by real-time media analytics, media companies will be able to deliver more targeted and impactful content that resonates with audiences on a deeper level. In summary, 5G is set to revolutionize the way we consume and create media, unlocking endless possibilities for the industry.

I see 9 key areas where 5G will change the way we create, consume and share content, unleashing new audience and fan experiences with dramatic, unprecedented added value revenue potential:

LIVE STREAMING ANYWHERE

• Mobile live streaming has become an integral part of the media landscape, gaining popularity among mainstream audiences due to its ability to deliver high-definition content for music, entertainment, sports, and social platforms. The past year has witnessed an unprecedented rise in real-time content on various platforms, including Twitch, Facebook, Instagram, TikTok, YouTube, and Pluto TV. Social and digital platforms have placed greater emphasis on live streams as they lead to higher engagement, longer viewing times, and increased monetization opportunities.
• The surge in live streaming video can be attributed to the advent of superfast home broadband, the widespread adoption of 4G mobile technology, and the proliferation of smartphones over the past few years. The COVID-19 pandemic in 2020 further accelerated the trend, with social platforms experiencing an 80% year-over-year growth in live streaming.
• However, the real revolution in live streaming is yet to come, as the advent of 5G technology with its peak throughput speeds of up to 20Gbit promises to usher in new possibilities. As the technology evolves, new spectrum is released, networks are rolled out, and a wide range of devices come to market, 5G will enable even more significant advancements in live streaming. Additionally, 5G will facilitate connectivity to previously hard-to-reach audiences, thanks to Fixed Wireless Access.

IMMERSIVE MEDIA

• By utilizing augmented reality (AR), virtual reality (VR), and 360 volumetric videos connected through 5G technologies, fans and viewers can experience complete immersion and interact with the action inside a game, show, or event. However, legacy VR & AR entertainment devices and content have historically required substantial processing power, especially for rendering graphics across different functions and controls, which can quickly drain device batteries. Fortunately, 5G technology’s high performance, ultra-reliable low latency connectivity, and cloud and edge computing capabilities enable heavy processing to move to the cloud and bring content closer to the user, resulting in instantaneous real-time, thrilling AR and VR experiences. Whether for multi-player online and interactive gaming, location-based VR, or live “behind the scenes” content for immersive sports, music, and event productions, 5G has the potential to be the game-changer that these immersive platforms have been waiting for.

RESPONSIVE CONTENT

• With ultra-low latencies between 1 and 4ms, 5G will unlock real-time experiences previously unavailable to content producers and consumers. From autonomous vehicles, multiplayer gaming, IoT, and machine-to-machine connectivity like remote-controlled cameras and drones in TV production, to voice assistants and control of nearly anything, consumers will increasingly access, select, and impact media and content in real-time from any location. This will drive new forms of hyper-personalized content, enhancing interactive, immersive storytelling possibilities such as branching narrative programming, which requires multiple video streams to be queued up so users can guide the plot. Simple web browsing, video chat, and streaming will also benefit from this key 5G functionality, greatly increasing audience interactivity.

IMMERSIVE MARKETING & BRAND COLLABORATION

• Brands are seeking to establish seamless connections and meaningful engagements with consumers across various touchpoints by leveraging smarter, more targeted advertisements and immersive brand experiences, which are powered by advanced analytics. With a mobile-first approach, brands have recognized the unprecedented potential of smartphones to influence consumer behavior and drive sales. The emergence of 5G technology has further widened the scope for creating highly innovative and immersive brand experiences in diverse industries. For instance, brands can use 5G-powered technology to provide customers with interactive makeup tutorials, virtual 360-degree showrooms, and in-store experiences for the retail sector. Brands can also utilize sponsorships at music, sports, and cultural events to offer exclusive behind-the-scenes content to viewers. 5G connectivity plays a crucial role in facilitating the production and audience access to such experiences, while collaborative partnerships within the media value chain can unlock lucrative opportunities for all stakeholders, fostering creativity and technological innovation.

TALENT & FAN ENGAGEMENT

• In 2022, various music artists, movie stars, TV personalities, sports icons, and social media creators took advantage of the multitude of opportunities available to connect with their fans online. This included hosting impromptu gigs, participating in promoted content conversations, and engaging in discussions in fan and community forums. The emergence of celebrity message platforms suggests that personalized talent-to-fan engagement has the potential to be a highly sought-after premium offering. Additionally, real-time fan-to-fan engagement and commentary on social media and other platforms, such as “watch together” around live sports and entertainment content, is a rapidly growing trend worth observing. With the advent of 5G technology, even more innovative avenues will open up for fans to discover new talent and engage and interact with established sports, music, and entertainment stars. Smartphones powered by 5G will serve as a catalyst for growth and innovation in this area, whether used as a primary or secondary screen, and whether at home, on the go, or in a stadium.

MARQUEE EVENTS

• At major events, the availability of 5G technology enables greater connectivity between fans than ever before. Previously, limited network capacities greatly hindered large-scale event connectivity, particularly for multimedia purposes. However, with the potential for a much larger number of devices to connect in a given area (up to 1 million devices per square kilometer), 5G has the ability to revolutionize festivals, sports, and music events. This advancement in technology will offer fans a plethora of opportunities to engage with each other, participate in and fully immerse themselves in the action, or interact with the talent and sponsoring brands. As a result, 5G has created new and immense opportunities for activation and monetization.

REMOTE PRODUCTION

• With the advent of 5G connectivity, live productions in the field will no longer be tethered to specific locations. This will allow for the transmission of high-quality broadcasts from virtually anywhere, with minimal latency. This breakthrough will pave the way for new programming formats and on-the-fly collaborations, enabling talent to work together regardless of their physical locations. For example, multiple musicians in different places can perform together seamlessly. Moreover, 5G connectivity will foster new innovations such as AI-enabled remotely controlled cameras. ViacomCBS successfully tested some of these scenarios in Amsterdam in September 2020, demonstrating the possibilities of live productions over a public 5G network. Ultimately, 5G connectivity will result in more content from diverse locations, greater artistic freedom, more agility, increased safety, and reduced costs.

DEDICATED PRODUCTION BANDWIDTH

• As time goes on, 5G technology will increasingly support a range of media production activities. These may range from capturing breaking news footage with a single camera to broadcasting multi-camera entertainment shows at large venues. However, as new use cases emerge, the challenge will lie in providing high-quality, ultra-low latency feeds with a guaranteed quality of service that is tailored to the specific production requirements. This is especially important in crowded environments with numerous connected devices, such as major events. 5G offers two primary solutions to this challenge: the first involves setting aside a dedicated ‘slice’ of the public mobile network’s bandwidth for the production, while the second involves using a private or non-public 5G network. Both of these scenarios provide reliable service and dedicated bandwidth. Although the business models for these use cases are yet to be explored with mobile networks, broadcasters will be able to significantly streamline their Outside Broadcast operations in the future.

AUGMENTED REALITY

• There are already multiple companies developing their own AR glasses that could look around you and show you things in response. This would be highly beneficial, much like having the internet in your pocket, and would enable all sorts of new and unforeseeable possibilities. Although this could work on 4G, continuous, low-power, high-speed, and low-latency connections from 5G would make it even better.

Significant investments have been made in 5G and Metaverse infrastructure, spectrum, licenses, and device innovation. However, the potential benefits of this technology will only be realized if businesses utilize it to address the challenges and issues that impact major industry verticals worldwide.

The media and entertainment sector presents the most promising opportunity to engage consumers and ignite the mass video streaming market. Yet, there is tremendous potential for innovation across the entire production supply and value chain. This includes content creation, production workflows, and new platforms like VR and AR, as well as stadiums, marquee events, and interactive and immersive gaming.

No single company can fully capitalize on Metaverse’s and 5G’s promise. To achieve this, mobile network operators, satcom, technology firms, and media companies must collaborate, leverage their respective strengths, and innovate together to develop new use cases for this revolutionary technology. By doing so, they can create thrilling new experiences for consumers.

Let’s start today.

PS: For more information, check the following whitepaper