by Joshua Builta, IHS Markit analyst
Editor’s Note: Video streaming would be considered to be a subset of Enhanced Mobile Broadband-the most popular 5G use case.
The 5G era is set to drive the next wave of growth in video streaming, with 78 percent of U.S. consumers indicating they will expand this activity as they adopt the next-generation wireless standard in smartphones and home-networking solutions, according to a survey conducted by IHS Markit Digital Orbit.
When asked to name which types of activities they are likely to increase due to the arrival of 5G, consumers ranked video streaming first, ahead of video calling, social media, mobile gaming, virtual reality and augmented reality. As a result, the deployment of 5G will help cause video usage to grow to account for 70 percent of mobile network traffic in 2022, up from 47 percent in 2015.
“The promise of faster video streaming through 5G is generating enormous enthusiasm among consumers,” said Joshua Builta, senior principal analyst for IHS. “Interest is particularly high for those younger than 50, with 81 percent of survey respondents in that age range citing video streaming as the top activity for 5G. Consumers are expressing strong interest in video streaming both on smartphones and for home internet services, which are equally supported by 5G.”
Smartphone streaming moves to 4K:
Current 4G wireless services already provide sufficient performance to support most types of video content commonly streamed today. As a result, 5G’s largest impact will be felt in emerging areas of the market.
One of these areas is 4K ultra-high definition (UHD) video. The 5G NR 3GPP spec enables 4K on mobile platforms because of its increased capacity and speed. When coupled with the growing demand and supply of 4K UHD content, the proliferation of 5G will help drive mobile consumption of UHD content.
The 5G standard (IMT 2020) will also be critical to promoting the consumption of general live video. This is particularly true for sports and live events, where lower latency and higher speed and bandwidth are critical.
Home 5G promotes video streaming:
In parallel with the trends in the smartphone market, US consumers are expressing intense interest in engaging in 5G video streaming via home internet access.
Most consumers say they are attracted to 5G (proprietary or 3GPP 5G NR) fixed wireless access (FWA) by its faster speeds. The average speed of broadband connections in the US in 2018 was about 35 megabits per second. In contrast, 5G can theoretically operate at up to 1 gigabit per second, although initial deployments will be much slower.
Survey respondents cited streaming of video, both prerecorded and live, as the most compelling reason to upgrade home internet service. A total of 74 percent of those surveyed named video streaming as the chief motivation for upgrading to 5G in the home.
This phenomenon is not surprising as IHS Markit forecasts that global over-the-top (OTT) video subscriptions will pass the 1 billion mark in 2021, up from 620 million at the end of last year. In 2022, OTT video subscriptions will surpass pay-TV subscriptions.
About IHS Markit Digital Orbit:
IHS Markit’s Digital Orbit report summarizes the results of a survey on how consumers perceive 5G and how they intend to use the new technology. The survey was conducted May 22-27 among 2,031 respondents, 95 percent of whom were US-based. The median age of the survey respondents was 43, and 63 percent lived in urban areas.