V I R T U A L E N T E R T A I N M E N T A N D M A R K E T I N G

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F i l m s t u d i o s Studios have launched accelerator programs to fund startups; although these programs have been more focused on mobile and social applications than VR at this point, it is likely that VR will become a stronger focus as the technology approaches commercial availability. While studio-funded startups have failed to generate a return-oninvestment, their intangible value is in bringing innovation and fresh thinking to studios’ established, typically riskaverse units. Together with Web video and mobile apps, virtual reality represents a platform through wich studios will deliver content. Although this content has until now been limited to promotion, studios will likely use these accelerator programs to experiment in the VR space with original content. In terms of promotion, VR offers studios a way of selling films as not just films but as experiences, as they invite users to live within the world of the film. This promotional content may even be made commercially available to consumers. Original content will arrive once the market for VR has been proven viable, as studios have been burned by the promise of previous hyped technologies such as CD-ROMs and 3D televisions. V i d e o g a m e c o m p a n i e s Video games appear to be the most appropriate and most immediately adaptable content for VR. Companies are experimenting with bringing established game genres to VR, such as first-person shooters through Valve’s Half-Life 3 and platforming through independent developer Playful Corp’s Lucky’s Tale. Additionally, VR’s immersive quality allows for games that would be impossible to deliver without the technology. This is not to say, though, that VR will not be integrated with existing video game platforms, as Sony’s Project Morpheus and its connectivity to the PlayStation 4 demonstrate. Therefore, VR could help drive sales of traditional game hardware and software. Finally, as physical game sales continue to decline amidst the rise of digital distribution, VR represents another venue for which games will be sold digitally. 18
S o c i a l m e d i a B r a n d s Facebook’s $2 billion purchase of Oculus VR suggests the potential for social media in VR. At the time of the acquisition, Facebook CEO Mark Zuckerberg stated that the company expected to profit from the deal through advertising, software, and services. Facebook’s reputation for working with advertisers, however, inspired criticism about the prevalence of ads that might litter VR. While it is highly probable that advertising will be integrated within Oculus’s VR content, the best advertising in VR will be content that users actively desire to experience. For instance, a brand can target its Facebook “fans” and drive these fans to actively want to experience (and re-experience) the brand’s VR content. Facebook’s infrastructure can further drive global adoption of VR if an ecosystem for content is developed. Lastly, motion-tracking software in VR will provide Facebook with another data measurement tool of user behavior. For brands, VR encourages visceral consumer experiences that will be actively sought out by consumers rather than interrupting them. That is, VR will help make advertising attractive to consumers through advertising that works like content. For example, a consumer might seek out a brand’s VR content if it offers a new experience. While all VR content will be a new experience to consumers when VR technology first becomes commercially available, the challenge will be in keeping this content innovative in the long-term. It seems likely, though, that branded content will also be made commercially available, which will generate further revenue. Finally, VR headsets’ motiontracking capabilities will define how users act in VR environments. Based on this, content can be more efficiently designed to maximize ad exposure and engagement. 19
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