Streaming Gaming Surpasses Netflix: Opportunities for Operators

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Eliminating the requirement to purchase a hardware gaming system to play video games opens significant possibility for the industry to see major increases in revenue for years to come.

While it is no secret that Wi-Fi speeds are getting better, everyone knows Wi-Fi still can’t compare with the advantages of running a stable and physical connection. Separately, if you follow developments in the telecom industry at all, the lack of broadband in rural areas means those regions may face limitations when it comes to accessing the full potential of the next generation of gaming. The bottom line: direct and easy access to high-quality and high-demand games is a great thing for the gaming industry, assuming it all works—and works well.

In the U.S.A., figures 1 and 2 below demonstrate the disparity between states with the fastest and slowest internet speeds.

Figure 1 – States with the fastest internet speeds.
(Courtesy of recode)

Figure 2 -States with the slowest internet speeds.
(Courtesy of recode)

As mentioned previously, the gaming industry values at a booming $134.9 billion (yes billion) in 2018, a number worth mentioning twice, and with revenue growth of more than 10 percent in 2018, we are not talking about a market making a small splash. No, it’s making waves. Mobile gaming succeeded in bringing millions, if not a billion, new gamers to the industry, accounting for 47 percent of the entire industry’s revenue, which equals $63.2 billion. Like the advent of mobile gaming, eliminating the requirement to purchase a hardware gaming system to play video games opens significant possibility for the industry to see major increases in revenue for years to come.

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