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

Key Takeaways
• VR is attracting money and projects
because of its immersive nature; however,
AR represents a higher level of immersion
that is integrated with the physical
world. For this reason, entertainment
companies and brands should consider
how they can work in both VR and AR.
• VR poses an obvious application
for entertainment companies whose
content consumers already seek out.
• VR is a platform that is unique from other
media. Thus, VR requires unique content
rather than repurposing of existing media.
Creating this content requires a rethinking
of producing content for the medium.
However, its initial integration is likely
to occur through older forms of media,
such as video games, film and television.
• VR is unlikely to pose an immediate
threat to film and television. Rather
than displacing these platforms,
VR will represent a new pillar of
entertainment. While VR content will
likely adapt existing franchises and
intellectual property, it requires new
economic and distribution models.
• Three distribution models seem likely: as
a roadshow (such as Game of Thrones:
Ascend the Wall); in a dedicated physical
space (similar to an arcade in the lobby
of a movie theater); and in the home
(through dedicated and smartphoneintegrated
headsets). However, as
with film and video games, people will
primarily consume VR content at home.
●• While smartphones may pose the
most immediate and most affordable
VR solution at present, dedicated VR
displays (headsets) are the next step. This
seems especially true considering that
the wearable technology trend suggests
that phones will not be the primary
device for consumers for much longer.
• Video games will drive VR innovation
before Hollywood (e.g., film and television
companies) more markedly adopts VR
for distributing original content. This is
because video game consoles - as Sony’s
Project Morpheus, which works with the
company’s PlayStation 4 - are readily
equipped to integrate VR and AR.
• Before making a larger commitment,
brands and entertainment companies
are waiting to see if VR will prove to be
a utility or a novelty. This hesitation is
driven partly by the technology’s rapid
evolution, as suggested by Magic Leap
and AR technologies such as Microsoft’s
HoloLens. However, with 2016 marking
the release of consumer versions of Oculus
Rift and HoloLens, this hesitation should
not be a hinderance for much longer.
• AR technologies will prove even more
disruptive than VR. Magic Leap, for
example, presents the opportunity for
exhibition to occur anywhere and will
therefore challenge content companies
that desire for their content to be
exhibited in specific contexts such as the
controlled spaces of a television screen,
movie theater, or VR headset display.
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