The market for OTT and 5G-enabled services encompasses a broad spectrum of digital content and applications delivered directly to consumers over IP-based networks, with enhanced performance and commercial potential driven by fifth-generation mobile connectivity. The intersection of these two domains introduces new monetisation opportunities through advanced user experiences and low-latency service delivery. For the purposes of this research study, the market is segmented by service type, delivery mechanism and use-case intensity.
This segmentation framework enables a structured assessment of value creation pathways across the service ecosystem.
OTT services are digital platforms that deliver content and applications over the internet independently of the underlying network provider. Originally applied to video and messaging platforms, the term now covers a broader range of consumer-facing digital services. In this study, OTT services are considered within the context of enhanced media and entertainment experiences delivered over both fixed and mobile networks, with a specific focus on formats that benefit from or require high-performance connectivity.
OTT services are primarily monetised through direct-to-consumer models, though integration with operator billing and bundling with network services is becoming more common in mature markets.
5G-enabled services refer to digital applications and media experiences that are functionally dependent on the advanced characteristics of fifth-generation mobile networks. Unlike previous generations of wireless technology, 5G enables differentiated performance attributes that unlock new use cases for content distribution and real-time interactivity.
These services often require deployment of edge computing infrastructure, network slicing, and service-aware traffic prioritisation. Monetisation strategies include quality-of-service-based pricing, operator-OTT revenue share models, and premium access tiers. As 5G networks evolve and mature, the commercial scalability of these services is expected to accelerate markedly through 2030.
The monetisation of OTT and 5G-enabled services depends not only on commercial arrangements but also on a complex ecosystem of enabling technologies. These technologies underpin the delivery, performance, and scalability of advanced digital services such as cloud gaming, AR/VR streaming and immersive media. This section explores the infrastructure and architectural components that are critical to successful deployment and monetisation.
Collectively, these elements allow operators and OTT providers to meet the stringent quality-of-service demands of immersive and real-time applications, while unlocking new revenue opportunities through performance-based service tiers, partnerships and infrastructure leasing.
The 5G ecosystem continues to evolve beyond its initial deployments, with new capabilities defined in 3GPP Releases 17 and 18 enabling more advanced applications and monetisation use cases. As networks transition from non-standalone to standalone 5G architecture, the benefits of ultra-low latency, dynamic resource allocation and end-to-end network slicing are becoming fully realisable.
The evolution of 5G creates a foundation for differentiated service offerings where quality, bandwidth and latency can be monetised directly or bundled into premium experiences with content partners.
Edge computing, and specifically multi-access edge computing (MEC), plays a pivotal role in enabling the low-latency and context-aware delivery of 5G-enabled OTT services. By relocating computation, storage and content closer to the end user, MEC reduces the need for round trips to centralised cloud infrastructure, thereby improving responsiveness and reducing congestion.
Operators are increasingly deploying MEC platforms in collaboration with cloud hyperscalers, such as Amazon Wavelength, Microsoft Azure for Operators and Google Distributed Cloud Edge. These integrations are crucial for creating monetisation pathways where content providers pay for edge infrastructure access or participate in co-branded service offerings.
The architecture of OTT services in the 5G era is evolving to incorporate distributed compute, intelligent traffic management and adaptive content delivery technologies. A modular, cloud-native approach to service delivery enables scalability, rapid deployment and integration with third-party platforms.
Advanced OTT architectures also integrate APIs and orchestration tools to enable interoperability with operator systems, including billing, subscriber management and network policy control. This integration facilitates revenue-share arrangements, usage-based pricing and service-level enforcement, all of which are critical components of modern monetisation strategies.
Together, these technologies and architectural models form the foundation upon which the next generation of OTT and 5G-enabled services will be built, delivered and monetised.
Market Drivers and Restraints
The commercial outlook for OTT and 5G enabled services is shaped by a complex mix of economic, technological and regulatory factors. While robust consumer appetite, richer devices and improved network capabilities stimulate growth, supply side constraints, policy uncertainty and execution risk can impede momentum. Understanding the relative strength and interplay of these elements is crucial for stakeholders seeking to monetise next generation digital experiences through 2030.
Demand‑side Drivers
- Surging appetite for immersive entertainment: Consumers increasingly seek interactive and personalised formats such as cloud gaming, augmented reality streaming and spatial audio concerts. Better headsets, wearable displays and multi screen ecosystems reinforce this trend and lift willingness to pay for premium tiers.
- Rising adoption of unlimited data bundles: Competitive mobile plans that include generous or unlimited allowances reduce usage anxiety and encourage heavier consumption of high bandwidth content. As operators bundle OTT services within tariffs, end users gain frictionless access and higher perceived value.
- Generational shift toward subscription culture: Younger demographics exhibit strong acceptance of recurring digital spend across video, music, fitness and gaming. This normalises monthly service fees for novel media categories delivered via 5G networks.
- Increased time spent on mobile media: Work from anywhere patterns and commuter multitasking drive longer daily engagement windows, creating larger addressable audiences for low latency mobile first experiences.
Supply‑side Drivers
- Standalone 5G rollouts and wider mid band spectrum: Expanded coverage combined with higher capacity enables operators to support consistent quality for data intensive applications and to introduce differentiated service level agreements.
- Edge infrastructure investment: Scaling multi access edge computing nodes and programmable CDNs lowers latency and improves reliability, unlocking previously impractical use cases such as competitive cloud gaming over cellular connections.
- Partnership momentum between operators and platforms: Joint go to market initiatives, revenue share agreements and co branded offers accelerate user acquisition while reducing marketing overhead for both parties.
- Advances in video and graphics compression: More efficient codecs and adaptive streaming protocols reduce bandwidth per stream, improving economics for providers and affordability for consumers.
Regulatory Climate
- Net neutrality enforcement: Regulators in Europe and other mature markets continue to debate fair share contribution models and traffic prioritisation rules, influencing how operators monetise network quality tiers.
- Spectrum licensing policies: Mid band and millimetre wave allocations set the pace for high throughput coverage, while local licensing frameworks affect private network opportunities for venue based immersive events.
- Privacy and data sovereignty requirements: Stricter compliance obligations under GDPR, ePrivacy and related statutes impose additional cost for personalised content delivery and cross border user analytics but also encourage trusted value propositions.
- Competition scrutiny of vertical integration: Mergers between network operators, cloud providers and content studios draw antitrust attention, potentially limiting consolidation but safeguarding vibrant partner ecosystems.
Challenges and Risk Factors
- Quality of service perception gaps: Early 5G deployments that fail to deliver consistently low latency or high resolution experiences can erode consumer trust and slow uptake of premium tiers.
- Hardware affordability constraints: The total cost of ownership for advanced XR headsets or 5G enabled gaming accessories may inhibit mainstream adoption, especially in price sensitive regions.
- Fragmented standards and platform lock in: Competing ecosystems for game streaming, extended reality operating systems and edge orchestration create integration complexity and discourage seamless cross platform experiences.
- Macro economic volatility: Pressures on disposable income can trigger churn from discretionary entertainment subscriptions, affecting revenue forecasts and investor confidence.
- Cyber security exposure: Expanding attack surfaces across distributed edge nodes and user devices elevate risks of service disruption and data breaches, leading to potential fines and reputational damage.
Navigating these drivers and constraints requires coordinated investment, strategic partnerships and agile product design to capture value in the rapidly evolving market for OTT and 5G enabled services.
Monetisation Framework
The evolution of digital content consumption, accelerated by 5G and advanced OTT delivery mechanisms, is reshaping how value is captured across the media and telecoms ecosystem. Monetisation models are transitioning from traditional, direct-to-consumer revenue streams to more complex frameworks that integrate network performance, service tiers and platform collaborations. The monetisation of 5G-enabled OTT services relies on both existing revenue strategies and innovative models that leverage network capabilities, user segmentation, and real-time service personalisation.
This section outlines the prevailing monetisation structures across two principal domains:
- Traditional OTT Monetisation: Revenue models developed independently of network providers, focusing on user subscriptions, advertising, and transactional payments.
- Network‑Integrated Monetisation: Collaborative models that align OTT platforms with mobile operators and infrastructure providers to share revenue, bundle services, and monetise quality-of-service tiers.
Together, these monetisation layers define how OTT service providers and telecoms operators are monetising high-performance, content-rich digital experiences in the 5G era.
Traditional OTT Monetisation
Traditional OTT monetisation refers to models that rely on the direct exchange of value between the OTT provider and the end consumer, often with limited or no involvement from the underlying network operator. These models were first adopted by video and music streaming platforms, and have since been adapted for gaming, AR/VR, and other digital formats.
Key models include:
- Subscription Video on Demand (SVOD): Users pay a recurring fee to access a library of content. Widely used by platforms such as Netflix, Disney+, and Apple TV+, SVOD provides predictable revenue but requires continuous content investment to reduce churn.
- Advertising Video on Demand (AVOD): Free-to-view content supported by advertising revenues. AVOD is becoming more attractive for younger users and price-sensitive markets, with platforms like YouTube and Freevee expanding monetisable inventory through programmatic ad sales and brand sponsorships.
- Freemium Models: A base level of service is offered for free, with premium content, enhanced features, or exclusive access offered via in-app purchases or subscriptions. Popular in mobile gaming and increasingly relevant in cloud gaming ecosystems.
- Transactional Models (TVOD and PPV): Users pay per title or event. Transactional video on demand (TVOD) and pay-per-view (PPV) are common for major events such as sports, concerts, or game launches, offering spike revenues rather than recurring income.
- Microtransactions and In-App Purchases: Often used in gaming and interactive experiences, this model enables users to unlock additional features, cosmetic upgrades or content packs within an application. It requires a high degree of engagement and user base scale.
While these models remain the financial backbone of OTT delivery, they are increasingly supplemented with network-dependent strategies that link user experience quality to monetisable network services and deeper cross-industry collaboration.
Network‑Integrated Monetisation
Network-integrated monetisation represents a new generation of revenue models that connect OTT service economics with telecoms infrastructure and service delivery. This integration is particularly relevant for bandwidth-intensive and latency-sensitive applications such as cloud gaming, AR/VR streaming, and real-time immersive media.
Key mechanisms include:
- Revenue-Share Agreements: Operators and OTT platforms form commercial partnerships to distribute content via operator channels. Revenue is shared based on subscription volumes, consumption metrics or pre-agreed tiers. These agreements allow operators to differentiate their offerings, while OTT providers gain new distribution channels.
- Data-Free or Zero-Rated Access: Certain services are exempt from data caps, often as part of bundled plans. Operators may receive a fee from the OTT provider to zero-rate the service, or include it as a value-added incentive to acquire or retain subscribers.
- Quality-of-Service (QoS) Tiers: OTT services may be delivered at different quality levels based on the user’s tariff. Higher service tiers could guarantee low-latency streaming, HD/4K content or reduced buffering during peak hours. These QoS-linked offerings are underpinned by network slicing and MEC deployment.
- Co-Branded Bundles: Operators and OTT providers co-market bundled offers that include mobile data and premium content subscriptions. These offers help both parties scale rapidly in new markets, particularly where content discovery and price sensitivity are barriers to entry.
- Event-Based Charging and Sponsored Access: Network operators may monetise access to live or time-sensitive immersive events by offering session-based charges or allowing third-party brands to sponsor access, subsidising costs for end users while promoting their services.
- Usage-Based Billing Models: Particularly relevant in enterprise or venue-based immersive experiences, this model links fees to bandwidth consumption, session time or concurrent users, allowing granular monetisation and cost predictability for partners.
These integrated models are rapidly gaining traction as both operators and OTT service providers recognise the mutual value in offering optimised user experiences, extending customer lifetime value, and improving conversion rates. The degree of integration varies by market maturity, regulatory environment and infrastructure readiness, but the overall trend supports deeper collaboration across the value chain.
As 5G networks continue to mature and operators invest in programmable infrastructure, the commercial innovation at the intersection of content and connectivity is expected to be a defining feature of digital service monetisation through 2030.
Revenue Share Analysis
Revenue-sharing models are becoming increasingly central to the monetisation of OTT and 5G-enabled services, particularly as bandwidth-heavy, performance-sensitive formats like cloud gaming, AR/VR streaming, and immersive media rely more heavily on mobile network operator (MNO) infrastructure and edge delivery capabilities. Unlike traditional OTT services that monetise independently, these advanced services often require close coordination between OTT platforms, telecoms operators, and infrastructure providers to deliver consistent user experiences.
Revenue share models are typically structured around one of the following principles:
- Subscription or access-based models: A fixed monthly fee is collected from the user, which is then split between the OTT provider and the operator based on usage volume, contractual terms, or tiered structures.
- Usage-based billing: Revenue is allocated based on the amount of data consumed, session duration, or performance metrics such as latency or resolution delivered.
- Bundled value partnerships: Operators pay OTT platforms a licensing or wholesale fee to include premium services in consumer plans, with end-user billing abstracted into telecom subscriptions.
- Performance-based monetisation: In some models, revenue splits adjust based on user engagement, churn, or average revenue per user (ARPU) uplift derived from enhanced service delivery over 5G.
The following subsections detail how these structures apply to the major verticals covered in this study.
Cloud Gaming Services
Cloud gaming is a prime example of a service category where revenue sharing between content providers and telecoms operators is increasingly required to support viable, high-quality user experiences. The delivery of real-time gaming via 5G requires ultra-low latency and high throughput, conditions typically met through MEC deployment, dedicated bandwidth slices, or access to prioritised traffic classes.
Key elements of revenue share structures in this domain include:
- Publisher–platform–operator triads: Game publishers often partner with cloud gaming platforms (such as NVIDIA GeForce NOW, Xbox Cloud Gaming, or Boosteroid), which in turn integrate with telecom operators. Operators receive a revenue share in exchange for delivering low-latency service and customer acquisition support.
- Premium network tiers for gaming: Some operators offer ‘gamer-centric’ mobile or broadband plans that prioritise traffic for cloud gaming. The revenue from these plans is partially directed to platform providers or is based on a licensing agreement.
- Edge access fees: Where content is hosted on operator-controlled MEC nodes, OTT platforms may pay infrastructure access fees. In return, they receive performance gains that enhance user satisfaction and retention.
Example model:
- User pays £10/month for cloud gaming service.
- 40% retained by OTT platform, 35% shared with operator for distribution and network QoS, 25% allocated to publisher/content creator.
This revenue framework encourages collaboration by rewarding performance, distribution and engagement equally.
AR and VR Streaming
AR and VR streaming services, particularly in the form of mobile AR applications or headset-delivered VR content, depend on both bandwidth and latency controls to deliver immersive, real-time experiences. Given the high cost of network resources and the need for regional optimisation through edge rendering, commercial alignment between OTT services and telecoms operators is essential.
Typical revenue share structures in this space include:
- Pay-per-session or pay-per-stream revenue models: Users pay for individual experiences (such as a virtual museum tour or AR live concert), with revenue divided between content creators, platform hosts, and operators delivering the session.
- Bundled subscriptions with premium access tiers: Operators offer extended reality content packages with 5G plans, where OTT services receive a base fee or per-user share.
- Sponsored experiences: Brands may sponsor premium AR/VR content (for example, immersive advertisements or branded entertainment) with revenue shared between platforms, content creators, and network partners facilitating delivery.
Example model:
- User purchases a £4.99 VR concert ticket.
- 50% allocated to content creator, 30% to platform provider (for example, Meta, HTC Viveport), 20% to operator for bandwidth provisioning and latency optimisation.
This model creates incentives for high-quality production and seamless delivery, aligning all players towards a frictionless user experience.
Immersive Media Experiences
Immersive media, such as volumetric video, holographic events, and persistent metaverse environments, often involves multi-stakeholder environments where content, commerce, interaction, and connectivity converge. These experiences demand intensive compute and real-time responsiveness, requiring tight orchestration between content ecosystems and network capabilities.
Revenue share in immersive media typically incorporates:
- Event-based revenue models: Multi-party revenue splits involving event organisers, platform hosts, telecom operators, and edge infrastructure providers. Revenue can be generated through ticket sales, in-experience purchases, or sponsored access.
- Spatial commerce enablement: In metaverse-like environments, operators may monetise via platform access fees or transaction commissions on digital goods bought during live events or immersive exhibitions.
- Service tier monetisation: Operators may offer different levels of immersive service quality (for example, HD holographic access, interactive participation), with OTT partners receiving shares based on user tier and engagement duration.
Example model:
- £15 ticket to a holographic sports event.
- 40% to event organiser and rights holder, 25% to immersive platform provider, 25% to operator (covering edge streaming, bandwidth slicing), 10% to venue or ecosystem partners.
These dynamic and multi-directional revenue models reflect the complexity of delivering premium immersive content over advanced 5G networks. The alignment of technical capacity with content value and user willingness to pay forms the foundation for sustainable monetisation in the coming years.
Market Sizing and Forecast (2025 to 2030)
The combined market for OTT and 5G-enabled services, particularly cloud gaming, AR/VR streaming and immersive media experiences, is forecast to undergo significant expansion between 2025 and 2030. This growth is driven by broader 5G network availability, improved device ecosystems, maturing edge infrastructure, and new monetisation frameworks that incentivise collaboration between content creators, platform providers and mobile network operators.
Revenue forecasts in this study are presented using a base case scenario, with conservative and aggressive growth projections used to account for variations in regulatory, economic and technological developments. All figures are expressed in GBP and consider both direct-to-consumer and network-integrated revenue streams.
Global Revenue Forecast
In 2025, the global market for OTT and 5G-enabled services across cloud gaming, AR/VR streaming and immersive media is projected to generate approximately £48.3 billion in total revenue. This figure includes revenues from direct subscriptions, advertising, transactional payments, and revenue-share allocations to network operators.
By 2030, the market is forecast to reach approximately £122.5 billion, reflecting a compound annual growth rate of 20.3% over the six-year period.
Forecast Summary (2025–2030):
| Year | Global Revenue (GBP Billion) | Year-on-Year Growth (%) |
|---|---|---|
| 2025 | 48.3 | — |
| 2026 | 58.6 | 21.3 |
| 2027 | 70.9 | 21.0 |
| 2028 | 85.2 | 20.1 |
| 2029 | 101.4 | 19.0 |
| 2030 | 122.5 | 20.8 |
This growth is underpinned by the increasing monetisation of network performance, the proliferation of edge-enhanced content delivery, and the consumer shift toward subscription and interactive formats.
Regional Breakdown
Market maturity and revenue potential vary significantly by region, reflecting differences in 5G infrastructure investment, regulatory environments, content localisation strategies, and digital media adoption rates.
Revenue Forecast by Region (GBP Billion):
| Region | 2025 | 2030 | CAGR (2025–2030) |
|---|---|---|---|
| North America | 14.2 | 33.9 | 19.1% |
| Europe | 11.8 | 28.3 | 18.8% |
| Asia-Pacific | 16.5 | 44.7 | 21.5% |
| Latin America | 2.9 | 7.2 | 20.4% |
| Middle East & Africa | 2.9 | 8.4 | 23.4% |
- Asia-Pacific is expected to be the fastest-growing region, supported by rapid 5G deployment in China, South Korea, Japan and India, as well as rising mobile-first gaming and entertainment consumption.
- North America will remain the most lucrative per capita market, driven by premium content spend, strong operator-platform partnerships, and early adoption of MEC.
- Europe will experience steady growth, though monetisation may be affected by regulatory constraints around net neutrality and platform competition rules.
- Latin America and Middle East & Africa will benefit from improving affordability of 5G devices and increasing localisation of immersive content but will be limited by infrastructural and economic disparities.
Service Category Breakdown
Revenue contributions differ across service categories, reflecting user maturity, technological readiness and operator-platform integration.
Forecast by Service Category (GBP Billion):
| Category | 2025 | 2030 | CAGR (2025–2030) |
|---|---|---|---|
| Cloud Gaming | 18.1 | 46.3 | 20.9% |
| AR/VR Streaming | 12.7 | 32.4 | 20.5% |
| Immersive Media | 8.3 | 25.6 | 25.2% |
| Other OTT Services* | 9.2 | 18.2 | 14.2% |
*Excludes legacy video/music platforms and includes emerging 5G-enhanced formats not categorised under the three core segments.
- Cloud Gaming remains the largest revenue contributor due to its high engagement, well-developed monetisation models, and broad device compatibility.
- AR/VR Streaming will gain share as headsets become more affordable and enterprise use cases (for example, virtual training, remote collaboration) expand.
- Immersive Media Experiences will grow fastest due to the rise of live virtual events, volumetric streaming, and metaverse environments that monetise access, participation and digital commerce.
As consumer demand continues to shift toward real-time, interactive formats, the convergence of content and connectivity will become the principal growth engine for the OTT and 5G-enabled services market.
Competitive Landscape
The market for OTT and 5G-enabled services is characterised by dynamic competition and increasing interdependence between content providers, network operators, cloud infrastructure providers, and device manufacturers. As monetisation models evolve beyond standalone offerings, competitive advantage is shaped not only by content quality and user experience, but also by integration with advanced connectivity, low-latency delivery, and scalable edge infrastructure.
This section profiles the key stakeholder groups, analyses how partnerships are reshaping competitive dynamics, and outlines investment trends influencing innovation and consolidation across the value chain.
Stakeholder Mapping
The value chain for 5G-enabled OTT services includes a broad spectrum of participants, each playing a role in content creation, distribution, delivery, monetisation, or infrastructure support. The main stakeholder categories are:
- OTT Platforms and Content Providers: These include cloud gaming services (for example, Xbox Cloud Gaming, NVIDIA GeForce NOW), immersive media platforms (for example, Meta’s Horizon Worlds, WaveXR), and AR/VR content developers (for example, Niantic, Within). Their competitive edge lies in exclusive content, user acquisition capability, and service engagement metrics.
- Mobile Network Operators (MNOs): Operators such as Verizon, SK Telecom, Telefónica and Deutsche Telekom are building strategic OTT partnerships and investing in MEC infrastructure to create differentiated offerings and new revenue streams. Competitive advantage centres on coverage, quality of service (QoS) management, bundling capability, and subscriber base.
- Cloud and Edge Infrastructure Providers: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are expanding edge capabilities through telco partnerships (for example, AWS Wavelength, Azure for Operators). Their strength lies in scalable compute resources, developer ecosystems, and orchestration frameworks.
- Device and Hardware Vendors: Companies such as Apple, Meta, HTC and Samsung are crucial for delivering the end-user experience, particularly in AR/VR and cloud gaming. Competitive advantage stems from hardware performance, software integration, and content ecosystem compatibility.
- Platform Enablers and Middleware Providers: These include companies providing streaming protocols, real-time rendering engines, XR developer tools and immersive commerce integrations. Examples include Unity Technologies, Dolby.io and Agora.io.
As competition intensifies, success is increasingly defined by a company’s ability to interoperate across this ecosystem while capturing a meaningful share of monetisable value.
Partnership Ecosystems
Strategic partnerships are central to monetising 5G-enabled OTT services, as no single entity typically owns the full delivery stack. The industry is moving toward ecosystem-based models where operators, platforms, and infrastructure providers collaborate to unlock mutual value.
Types of emerging partnerships include:
- Operator–Platform Alliances: Examples include SK Telecom’s partnership with Microsoft for cloud gaming, and Vodafone’s integration of Netflix and YouTube Premium into 5G bundles. These agreements often involve revenue sharing, traffic prioritisation and joint marketing.
- Edge Infrastructure Collaborations: AWS Wavelength deployments with Verizon and Vodafone bring compute closer to the user, enabling low-latency delivery of cloud gaming and immersive applications. Similar alliances with Microsoft Azure and Google Distributed Cloud extend this model across multiple operators.
- Device-Content Co-Development: Meta collaborates with game studios to deliver exclusive VR experiences optimised for Quest headsets. Apple’s anticipated Vision Pro ecosystem follows a similar model, pairing hardware with curated immersive content and edge delivery optimisation.
- Venue and Live Event Integration: Operators and OTT platforms are increasingly partnering with sports leagues, concert organisers and entertainment venues to deliver immersive experiences over private 5G networks or dedicated network slices, with monetisation shared across the stack.
These partnership ecosystems are becoming critical competitive differentiators, as they enable differentiated service tiers, improved QoS, and scalable go-to-market strategies.
Investment Trends
Venture capital, corporate investment and strategic M&A activity in the OTT and immersive services space has intensified as stakeholders race to secure market share and future-proof their technology stacks.
Key investment trends include:
- MEC and edge compute deployment: Operators are allocating significant capital to distributed infrastructure that supports real-time service delivery. Telstra, Telefónica and Deutsche Telekom have all announced regional edge rollouts in collaboration with hyperscalers.
- Cloud gaming and XR platform funding: Start-ups and scale-ups in cloud gaming, AR/VR and metaverse development are attracting investment. Notable examples include Rec Room, Hadean and Genvid Technologies, all of which are building immersive environments with strong telco and platform interest.
- Strategic acquisitions by telecoms and tech giants: Examples include Unity’s acquisition of Weta Digital’s tools division, Microsoft’s acquisition of Activision Blizzard, and Meta’s ongoing purchase of AR/VR start-ups. These moves signal a strategic effort to own immersive content pipelines and delivery technologies.
- Private 5G and venue-based innovation: Investment is flowing into private 5G networks for use in stadiums, arenas, and entertainment venues, critical locations for the deployment of immersive media experiences such as holographic concerts or AR-enhanced sports.
Investment momentum is expected to continue through 2030, with hybrid infrastructure, immersive IP, and cross-platform delivery capabilities seen as key levers for competitive advantage and monetisation scalability.
Competitive Profile Matrix
The matrix benchmarks leading organisations that are active in 5G enabled OTT services across six weighted criteria that directly influence commercial success. Each criterion is scored on a five‑point scale where one represents weak capability and five represents market leading capability. Scores are multiplied by criterion weight to generate a weighted score. The sum of weighted scores yields an overall competitiveness index for each company.
Weighting of Criteria
| Criterion | Rationale for inclusion | Weight |
|---|---|---|
| Network reach and quality | Breadth of 5G footprint and proven ability to deliver consistent service performance | 0.20 |
| Content portfolio strength | Depth, exclusivity and diversity of gaming, AR VR and immersive media assets | 0.20 |
| Quality of service assurance | Ability to guarantee low latency, high throughput and service uptime through mechanisms such as network slicing and edge hosting | 0.15 |
| Innovation momentum | Investment in research and development, speed of feature roll out and track record of first to market launches | 0.15 |
| Partnership depth | Breadth and strategic value of alliances with operators, cloud providers, device makers and content studios | 0.15 |
| Financial strength | Revenue scale, profitability and ability to fund long term investment | 0.15 |
Company Scores
| Company | Network reach and quality | Content portfolio strength | Quality of service assurance | Innovation momentum | Partnership depth | Financial strength | Total weighted score |
|---|---|---|---|---|---|---|---|
| Microsoft Xbox Cloud Gaming | 4 | 5 | 4 | 4 | 4 | 5 | 4.35 |
| NVIDIA GeForce NOW | 3 | 4 | 4 | 4 | 3 | 4 | 3.75 |
| Meta Platforms (Quest and Horizon) | 3 | 5 | 3 | 5 | 4 | 4 | 3.95 |
| SK Telecom | 5 | 3 | 5 | 4 | 4 | 3 | 4.05 |
| Verizon | 5 | 3 | 5 | 3 | 4 | 4 | 4.00 |
Scoring scale: 1 very weak, 2 weak, 3 moderate, 4 strong, 5 very strong
Interpretation and Insights
- Microsoft Xbox Cloud Gaming secures the highest overall index, driven by an unmatched content library and robust financial backing. Strong operator alliances enable quality of service differentiation in several launch markets.
- Meta Platforms scores highest in innovation momentum as it rapidly evolves its immersive ecosystem, though network reach relies on third‑party operators which limits its quality assurance score.
- SK Telecom and Verizon both achieve perfect marks for network reach and quality of service assurance owing to extensive standalone 5G deployments and mature edge infrastructure. Their lower content scores reflect a focus on partnership rather than proprietary content creation.
- NVIDIA GeForce NOW maintains solid positions across most criteria but lags slightly in partnership depth relative to operator heavyweights and platform centric rivals.
Stakeholders can use this matrix to identify potential collaborators that complement their capabilities or to benchmark their strategic investments against market leaders.
Case Studies
This section explores real-world implementations that highlight how OTT providers, telecoms operators, and infrastructure partners are collaborating to monetise and scale 5G-enabled services. Each case study demonstrates the strategic alignment required across the value chain to deliver immersive, high-performance experiences that generate revenue and strengthen user engagement.
Cloud Gaming Deployment
Case Study: SK Telecom and Microsoft Xbox Cloud Gaming (South Korea)
Overview:
SK Telecom partnered with Microsoft to bring Xbox Cloud Gaming (formerly xCloud) to its 5G mobile network, aiming to position cloud gaming as a flagship use case for high-performance mobile connectivity in South Korea.
Key Highlights:
- Network Integration: SK Telecom leveraged its standalone 5G core network and MEC infrastructure to minimise latency and jitter. Content was delivered through edge servers placed within SKT’s infrastructure to ensure sub-30ms response times.
- Commercial Model: Xbox Cloud Gaming was offered as part of SKT’s 5G-exclusive mobile gaming plan. Subscriptions bundled Microsoft Game Pass Ultimate with zero-rated data usage for cloud gaming traffic.
- Revenue Sharing: Revenue was shared based on active users and data consumption tiers. SK Telecom benefited from ARPU uplift while Microsoft accelerated user acquisition in a highly competitive gaming market.
- Results: The partnership increased average daily playtime and reduced churn among SKT’s premium 5G users. Early trials reported a 1.7x increase in data consumption among cloud gamers and 30% faster subscriber growth compared to other 5G services.
Implications:
This deployment demonstrated how strategic bundling and performance-based service delivery can drive monetisation and showcase 5G’s low-latency benefits, particularly when targeting digitally native, high-value user segments.
AR and VR Streaming Partnership
Case Study: Deutsche Telekom and Magenta VR with ARTE and Mozilla Hubs
Overview:
Deutsche Telekom launched its Magenta VR platform in partnership with European cultural broadcaster ARTE and Mozilla Hubs to stream live and pre-recorded immersive content including art exhibitions, concerts and virtual meetups.
Key Highlights:
- Content Experience: Magenta VR allowed users to participate in 3D spatial events using VR headsets or smartphones. Mozilla’s open-source Hubs technology provided an interactive, web-based environment that enabled cross-platform compatibility.
- Network Optimisation: Deutsche Telekom used MEC nodes to host streaming assets close to the user, enhancing the frame rate and reducing buffering. Adaptive bitrate streaming ensured consistent experience across devices.
- Partner Contributions: ARTE supplied high-quality immersive cultural content. Mozilla provided real-time interaction infrastructure, and Deutsche Telekom ensured consistent network QoS, device support, and billing integration.
- Monetisation Model: Access to certain VR events was provided through MagentaTV or bundled with premium mobile broadband plans. Revenue was shared based on user engagement and licensing terms with content providers.
Results:
The platform generated strong engagement among niche user groups including students, cultural audiences, and early adopters of XR. Average session durations exceeded 20 minutes, and VR-based live concert events attracted five-figure virtual attendances.
Implications:
The case highlights the potential of hybrid entertainment offerings to differentiate operator portfolios and the importance of content localisation and cross-device compatibility in scaling adoption.
Immersive Media Collaboration
Case Study: Verizon, The Weeknd, and WaveXR – Virtual Concert Over 5G
Overview:
Verizon partnered with immersive media company WaveXR and artist The Weeknd to deliver a live, holographic-style concert experience to audiences via 5G mobile and fixed networks in the United States.
Key Highlights:
- Technology Integration: The concert used volumetric capture and spatial audio, streamed via Verizon’s MEC nodes to ensure minimal latency. Fans could access the experience through mobile apps, AR headsets, and select smart TVs.
- Experience Features: Viewers interacted with dynamic environments and avatars, explored virtual concert spaces, and participated in real-time polls and digital merchandise drops.
- Commercial Strategy: The event was free to Verizon customers on specific plans, with monetisation occurring through sponsored content, branded in-event elements (for example, Nike virtual booths), and digital merchandise.
- Revenue Sharing: WaveXR received a platform fee and merchandising royalties. Verizon monetised through customer retention, brand engagement metrics, and strategic marketing value from hosting an exclusive event.
Results:
Over 2.3 million viewers participated across platforms. Verizon recorded a measurable uplift in brand sentiment and new activations among Gen Z users. In-event commerce generated six-figure digital item sales, validating spatial commerce as a viable revenue stream.
Implications:
This case illustrates how immersive media collaborations can drive multi-modal monetisation, from access and subscriptions to branded commerce, when paired with high-performance 5G delivery and exclusive content.
User Adoption and Behaviour Trends
Mobile versus Fixed Consumption
Consumers increasingly favour mobile access for immersive media, reflecting rising 5G handset penetration and cheaper data bundles. In 2025 mobile accounts for forty eight percent of total cloud gaming minutes, up from thirty four percent in 2023. By 2030 mobile share is expected to exceed sixty percent as handset graphics and battery life improve. Fixed access remains dominant for high resolution VR headsets that rely on Wi‑Fi six or fibre backhaul, but tether‑free standalone headsets are gradually eroding this gap.
Engagement Intensity
Average session length varies by service category. Cloud gaming users spend an average of forty two minutes per play session, while AR layers in retail apps average just seven minutes. Immersive concerts and metaverse events show strong dwell times of twenty five to thirty minutes but occur less frequently. High engagement correlates with willingness to pay for premium tiers and drives higher data consumption per user, reinforcing operator incentives to prioritise these services.
Subscription Fatigue and Bundling Preferences
Survey data indicates that forty one percent of UK respondents plan to cancel at least one video or music subscription in the next twelve months, citing cost sensitivity. Conversely, only eighteen percent intend to drop gaming or XR subscriptions, suggesting higher perceived value. Bundled offerings that combine multiple content verticals with data allowances reduce churn by up to twenty seven percent among 18–34 year‑olds.
Technology Readiness Index
| Technology Enabler | 2025 Maturity | 2027 Outlook | 2030 Outlook | Commentary |
|---|---|---|---|---|
| Stand‑alone 5G Core | Commercial rollout in tier one markets | Broad coverage across urban clusters | Near ubiquitous in developed markets | Enables network slicing and URLLC for real‑time XR |
| MEC Density (Edge Nodes per million subs) | 4–6 | 8–10 | 12–15 | Drives latency below 20 ms for cloud gaming |
| XR Codec Efficiency | HEVC and VP9 dominant | AV1 adoption accelerates | AI‑assisted compression mainstream | Lowers bandwidth per immersive stream by up to 40 percent |
| Volumetric Capture Pipelines | Pilot deployments | Semi‑automated workflows | Real‑time volumetric capture | Critical for holographic events and digital twins |
| Spatial Audio Standards | Fragmented proprietary formats | Converging toward MPEG‑H 3D Audio | Widely standardised | Enhances realism and user retention |
Scoring scale: Early stage, Commercial rollout, Broad coverage, Near ubiquitous.
Consumer Pricing Strategies
| Model | Typical Price Point (GBP) | Example Use Case | Strengths | Weaknesses |
|---|---|---|---|---|
| Stand‑alone Subscription | 7–12 per month | Cloud gaming library | Predictable recurring revenue | High churn risk if content library stagnates |
| Service‑inclusive Data Plan | +5 on top of core tariff | XR bundle with zero‑rated data | Reduces bill shock, boosts ARPU | Depends on operator partnership economics |
| Event‑based Ticketing | 3–15 per event | Holographic sports or concerts | Revenue spikes, sponsorship upsell | Volatile demand, marketing heavy |
| Freemium with Micro‑transactions | Free entry, IAP 0.99–9.99 | Mobile AR game skins | High conversion among engaged users | Requires large active base, regulation scrutiny |
| QoS‑linked Premium Tier | +20 percent to base plan | Guaranteed 4K cloud gaming | Monetises network quality | Complex SLA management |
Price points are median UK retail values inclusive of VAT, rounded to nearest pound.
Regulatory Watchlist
- Net Neutrality Cost Recovery: The European Commission is reviewing fair contribution proposals that could allow operators to negotiate wholesale payments from large traffic generators. A decision expected in late 2026 could materially affect revenue‑share models for immersive streaming.
- UK Digital Markets Bill: Expected to pass in 2025 and grant the Digital Markets Unit new powers over dominant OTT platforms. Potential remedies include interoperability mandates for XR app stores and limits on exclusive content deals with operators.
- Spectrum Policy Adjustments: Ofcom plans to auction additional upper mid‑band spectrum in 2027, earmarking a portion for local enterprise 5G licences. This may accelerate private immersive deployments in stadiums and campuses, affecting public operator traffic volumes.
- Data Sovereignty and Cross‑Border Streaming: The EU Data Act (phased implementation 2025–2028) will tighten controls on movement of user telemetry for personalised XR services. OTT providers must localise processing or adopt privacy‑preserving analytics, adding cost but potentially boosting consumer trust.
Barriers to Adoption and Market Acceleration Levers
| Barriers | Impact | Mitigation Levers | Acceleration Potential |
|---|---|---|---|
| High XR Hardware Cost | Limits addressable market for VR headsets | Operator instalment plans, hardware subsidies | Medium |
| Latency Variability on Non‑Standalone 5G | Degrades cloud gaming experience | Rapid migration to stand‑alone cores, MEC densification | High |
| Limited Content Localisation | Reduces appeal in emerging markets | Creator funding programmes, AI dubbing | Medium |
| Subscription Fatigue | Raises churn across OTT verticals | Integrated bundles, loyalty rewards, flexible billing | High |
| Energy Consumption Concerns | Attracts regulatory scrutiny for data centres | Investment in green edge sites, efficient codecs | Medium |
| Fragmented XR Standards | Creates integration friction for developers | Industry alliances, open APIs, developer toolkits | Medium‑High |
Addressing these barriers through targeted levers can accelerate adoption trajectories by twelve to eighteen months, particularly in markets where 5G deployments and consumer readiness already align.
Strategic Recommendations
As the market for 5G-enabled OTT services matures, monetisation will depend on ecosystem collaboration, technical integration, and customer-centric packaging. The recommendations below are tailored to the primary stakeholder groups shaping the future of cloud gaming, AR/VR streaming, and immersive media.
Mobile Network Operators
- Position the network as a value-added service layer: Operators should move beyond connectivity-only roles and monetise differentiated performance via network slicing, edge-hosted delivery, and application-level optimisation. Create service tiers that bundle OTT access with guaranteed latency, resolution, or uptime.
- Establish long-term revenue-share partnerships: Collaborate with leading OTT platforms to create co-branded offerings that include bundled subscriptions, shared billing systems, and service personalisation. Target Gen Z and mobile-first consumers with gaming, XR, or metaverse bundles.
- Invest in regional MEC infrastructure: To support real-time use cases such as cloud gaming and volumetric streaming, operators must accelerate deployment of distributed compute resources. This unlocks edge monetisation opportunities while enhancing service stickiness.
- Leverage proprietary data for personalisation and targeting: MNOs possess rich subscriber analytics that can be used to support dynamic content personalisation, targeted immersive advertising, or tiered access models, all monetisable when linked with OTT partner platforms.
- Enable network APIs and expose QoS-as-a-service: Open programmable interfaces to allow third parties to request quality-of-service levels dynamically. This facilitates B2B monetisation of latency-sensitive OTT experiences in entertainment, health, education, and enterprise training.
OTT Service Providers
- Design content for mobile-native, low-latency delivery: 5G networks enable fluid experiences on mobile devices, but content must be optimised for short session lengths, touchscreen interaction, and low power consumption. Consider modular content formats and real-time streaming architectures.
- Pursue deep operator integration, not just distribution: Go beyond device compatibility and invest in co-development with network operators. Integrate with operator identity, billing, analytics and edge orchestration platforms to enhance performance and monetisation.
- Adopt flexible pricing models: Support usage-based, event-based, and QoS-linked pricing in addition to standard subscriptions. Consider freemium strategies with unlockable immersive content, ad-supported XR formats, and tiered virtual event access.
- Localise experiences and infrastructure: Tailor AR/VR content to regional cultures, languages and events. Where possible, deploy edge workloads near key user bases to reduce latency and improve retention. Work with telcos on regional caching and hosting.
- Embrace spatial commerce and gamification: Enable virtual purchases, avatar customisation, and immersive sponsorships to generate revenue beyond subscriptions. Gamify loyalty schemes and real-world brand integration to increase engagement and dwell time.
Infrastructure Vendors
- Develop modular, interoperable edge platforms: Telco and OTT ecosystems need edge compute solutions that are scalable, open, and orchestrated via APIs. Focus on low-footprint MEC nodes, pre-integrated with leading cloud frameworks and XR rendering engines.
- Support rapid onboarding of content partners: Enable low-code or no-code tools for AR/VR developers to deploy experiences on your edge infrastructure. Offer SDKs, real-time monitoring, and automated scaling tailored to streaming, gaming, or volumetric applications.
- Create joint go-to-market models with telcos: Align product roadmaps with operator deployments. Co-invest in strategic accounts where immersive service quality is a differentiator (for example, stadiums, campuses, transport hubs).
- Ensure compliance with telco-grade reliability and security: MEC nodes and orchestration layers must meet carrier-class availability and integrate with telecom security and SLA monitoring tools. This is essential for monetising enterprise-grade and regulated content.
- Promote sustainability and cost efficiency: Offer energy-optimised edge nodes and support dynamic resource scaling to lower OPEX. Sustainable performance will be a long-term competitive advantage as immersive services scale.
Investors
- Focus on platforms that connect ecosystems: Rather than investing in standalone OTT applications, prioritise businesses that facilitate content–network–user integration. This includes edge streaming orchestration, immersive media infrastructure, and spatial commerce platforms.
- Seek exposure to edge and AI-enabled delivery chains: Companies that combine real-time analytics, AI-based personalisation, and adaptive network management are best positioned to optimise immersive media economics and scale globally.
- Back regional leaders in mobile-first emerging markets: India, Southeast Asia, Africa, and Latin America offer high mobile media engagement and accelerating 5G rollouts. Early investment in OTT–telco alliances here can yield outsized returns.
- Evaluate operator-backed media ventures: Some telcos are building or spinning off media-tech platforms to monetise their networks more directly. These ventures offer unique infrastructure access, captive audiences, and regulatory insulation.
- Monitor monetisation KPIs beyond MAUs: Assess immersive service models using metrics like engagement time, average revenue per minute (ARPM), data consumed per session, and QoS-driven conversion rates. These reflect deeper monetisation potential in the 5G context.
By aligning strategy with ecosystem interdependence and technology maturity, each stakeholder group can participate in a scalable, profitable future for 5G-enabled OTT services. The opportunity lies not in isolated growth, but in orchestrated value creation across platforms, pipes, and people.
Conclusion
The study demonstrates that the commercial future of over the top services delivered over fifth generation networks is defined by the union of content innovation and high performance connectivity. User behaviour is shifting towards mobile first consumption of demanding formats such as cloud gaming and spatial media, encouraged by expanding device ecosystems and data rich tariffs. Technology readiness is advancing in parallel, with stand‑alone cores, dense edge nodes and mature immersive codecs moving from pilot to broad implementation by the latter half of the decade.
Monetisation success depends on flexible pricing and deep collaboration. Traditional subscription and advertising models remain important, yet the greatest revenue lift comes when network capability is packaged into value propositions that combine guaranteed latency, exclusive content and bundled data. Operators that expose programmable quality of service, and platforms that integrate with billing and analytics engines, are positioned to claim a higher share of the expanding revenue pool.
Regulation will play a decisive role. Decisions on net neutrality cost recovery, data sovereignty and market dominance will shape partnership terms and the economics of network integrated models. At the same time sustainability pressures are guiding investment towards energy efficient codecs and green edge locations that can reduce total cost of ownership while supporting corporate responsibility mandates.
Barriers such as hardware affordability and standards fragmentation remain, but targeted levers ranging from operator financing programmes to open developer toolkits can shorten adoption timelines. Market catalysts include private venue networks for live immersive events and the continued convergence of spatial commerce with entertainment experiences.
Stakeholders that align strategy with these trends will unlock new revenue streams and secure lasting competitive advantage. Mobile network operators must transition from connectivity suppliers to experience enablers. Over the top providers should embed network performance into product design and diversify pricing. Infrastructure vendors need to prioritise interoperable edge solutions and sustainability. Investors will find the strongest value in platforms that bridge content and connectivity rather than in isolated applications.
By 2030 the monetisation landscape for cloud gaming, augmented and virtual reality streaming and immersive media will be characterised by seamless service quality, granular pricing, and shared value creation across an increasingly integrated ecosystem.
