Diving into Virtual Reality
Virtual Reality (VR) has played a critical role in the sphere of gaming – taking interaction to the next level and making things more real. However, over the past couple of years, VR has exploded in growth and is getting closer to becoming consumer-mainstream. In fact, on an investor call after the release of Facebook’s earning for Q2, 2015, Mark Zuckerberg reportedly said: “I think that immersive 3D content is the obvious next thing after video.” Experts suggest that this is just the beginning for VR and it is likely to improve significantly as technology progresses and content curators get comfortable creating valuable insights to suit the format.
The media industry, virtual reality offers promising opportunities – particularly in terms of enhanced consumer engagement. Of course, it depends on the companies to see how they can utilise these opportunities and use the convergence of technology and content to capture audiences. But, one thing is for sure: VR is here to stay and can’t be ignored. The following are key factors contributing to the rise of VR and defining its fast-paced growth:
1. The need for more content and immersive experiences: Even though a lot of people already do have access to VR through their smartphones and headsets, they still aren’t completely satisfied with the content. Lack of content is the primary reason that VR hasn’t fully been picked up across other media channels and is still confined to video games. Experts, however, predict that this is changing.
2. Huge investments are being made within the VR space: While technology companies were the first to realise the potential of VR, they are now joined by global media companies. For instance, an article on nytimes.com reported that “in September, Disney led a US$65 million investment in Jaunt, a virtual reality camera maker that also has software for editing and distributing the video. Comcast and Time Warner participated in a US$30.5 million funding round in November for NextVR, which uses virtual reality to broadcast live events. In January, Legendary Entertainment invested an undisclosed amount in 3BlackDot, a social media platform for virtual reality.” So, what’s attracting media companies to invest heavily in VR? It’s because they can now deliver content in a new, compelling manner; it allows for storytelling and a more personalised experience. At the same time, it also poses the serious challenge of evaluating existing content and migrating it into a VR platform. Moreover, media companies looking to use VR platforms should also be wary of the costs associated with buying the hardware required.
3. The rise of digital education: Apart from entertainment purposes, consumers are increasingly looking for technological solutions that can create a seamless educational experience. The last decade saw the rise of Massive Open Online Courses or MOOCs through portals such as Coursera, edX and so on. The next era of digital education will be largely impacted VR; several schools and universities have integrated virtual reality technologies within their curriculum. 3D immersion and VR technology have been quite successful in enriching educational programmes and bringing existing content to life. An initiative that has been able to completely revolutionise this realm of education is Google’s Pioneer Expeditions, which provides schools across the globe with a starter kit containing equipment that allows teachers to take their students on a virtual trip. For one day, these teachers get smartphones, a tablet, router, a library of over 100 virtual trips and Google Cardboard viewers that transform smartphones into VR headsets. So by virtue of this, teachers can actually take students on a virtual tour of the Great Wall of China rather than simply explain what it is. Can you imagine how interactive this can be?
4. The emergence of advertising and new revenue models through VR: Even though VR is currently a nascent medium and hasn’t fully been maximised, several media companies have already found ways to monetise the experience. Major media companies are partnering with leading brands; wherein they create content for the brand in exchange for sponsorships. This is a mutually beneficial arrangement because it gives the media company a chance to experiment with storytelling through VR, while the brand gets associated with innovation and futuristic technology. Another way of monetising the platform is through selling good content directly to consumers. As VR devices and platforms continue are on the rise, consumers purchasing these are looking for access to rich content. A report by NYC Media Lab explains further: “In-experience purchases, like shoppable fashion virtual reality content, could be a good option for virtual reality. One comparable business is the virtual economy in the Second Life metaverse, which is worth more than US$22 million dollars according to Re/Code. That money is spent on things like virtual clothing and real estate for the online avatars of Second Life users. The other possibility for selling the content directly is through subscriptions. Just as Hulu, Netflix, Amazon and HBO have grown their over-the-top video subscription offerings, there could be similar offerings for virtual reality as well. Valve offers the Steam game store that will offer content for the Vive when it is released. Once head-mounted displays are connected to these devices, usage for streaming could increase significantly.”
It goes without saying that media companies need to be wise when investing in VR experiments and need to have a structured approach in order to see results.
