Study Finds Hollywood Embracing VR Despite Technology Hurdles

LAS VEGAS: Hollywood views virtual reality as an industry game changer full of possibilities, despite the current hurdles facing the nascent technology, according to a joint study by the Consumer Technology Association and NATPE.

The study, conducted through 16 interviews, reveals that participants are passionate about the new medium and think it is likely a game changer. It also finds that there are understandable obstacles that still need to be addressed, among them generating a sustainable model for content creation, establishing a clear pathway to monetization and determining the endurance cap for sustained viewing that will affect long-form storytelling.

Another hurdle remains VR’s mass adoption, including the rate of headset purchases, the length of time users can comfortably use a headset, technical issues with filming the content, the availability of quality content and concerns of a solitary experience for the VR user.

However, the study participants nonetheless agreed that VR represents a new method of storytelling that offers an entirely new platform for consumers to experience entertainment and many other types of content. Creator participants identified horror as the next strongest genre, making an even more visceral and immersive experience, while other possibilities mentioned include sporting events and concerts that are live streamed in VR to create a 360-degree view of the action.

The study also notes that unit sales of VR headsets in 2015 were expected to increase by 500 percent, to reach 1.2 million units sold. Total revenues are projected to reach $540 million, a 440 percent increase.

“VR is the latest platform of immersive entertainment, with massive experimentation in content development last year,” said Steve Koenig, the senior director of market research at Consumer Technology Association. “A definitive trend at CES 2016 this week, the VR ecosystem will continue to advance and expand in 2016.”

“The future of VR is dependent on quality content and, with this study we wanted to provide a more comprehensive look at Hollywood’s attitudes on the many opportunities and challenges this technology faces,” said NATPE President and CEO, Rod Perth. “This study presents a snapshot of the types of genres that could be adapted to this dynamic technology but also offers a realistic picture of its limitations.”