Recommended
More Related Content
What's hot
What's hot (19)
Similar to Virtual Reality: Where is the money?
Similar to Virtual Reality: Where is the money? (20)
Recently uploaded
Recently uploaded (20)
Virtual Reality: Where is the money?
- 1. Virtual Reality: Where is the money? DAREFEST, 2016
- 2. 2016 VR LANDSCAPE (by @tipatat)
- 3. About me: Leen Segers Online Video (London based) Online publication | data intelligence Virtual RealitySocial MediaConsulting Short form | News | Open Source Long form | Movies & Series | SVOD Content Curation | SVRFree | Paid Data ReportsOnline Advertising | Brand Integrations EUROPE EUROPE, MIDDLE EAST & AFRICA EUROPE GLOBALBELGIUM Democratisation of quality content
- 4. 360° video 500,000 to 1,000,000 expected to sell in 2016
- 5. Virtual Reality 500,000 to 1,000,000 expected to sell in 2016
- 7. Augmented Reality 500,000 to 1,000,000 expected to sell in 2016
- 9. 2020 VR/AR will reach $120 billion Source: Digi-Capital Augmented/Virtual Reality Report 2016
- 10. VR will be big soon Source: Digi-Capital Augmented/Virtual Reality Report 2016
- 11. AR/VR Business models by 2020 Source: Digi-Capital Augmented/Virtual Reality Report 2016
- 12. VR - 2016 4 billion Source: Digi-Capital Augmented/Virtual Reality Report 2016
- 13. VR - 2016/2017 1. VR Hardware 2. VR Games 3. VR Video/VRE 4. VR apps (non entertainment) 5. VR theme park Source: Digi-Capital Augmented/Virtual Reality Report 2016
- 14. 500,000 to 1,000,000 expected to sell in 2016 15,000 pre-orders in 10 minutes; 100,000 in total HARDWARE: HEAD MOUNTED DISPLAYS VR 1,000,000 devices sold worldwide | 300,000 in Europe
- 17. VR Games
- 18. VRE
- 20. VR Apps - Non Entertainment Precision training
Editor's Notes
- - Hello, - The original request for presenting here today was not what is on the slide - I only noticed the money question when looking at the schedule yesterday - quite vague. Fredo was asked to bring an inspirational talk on VR and more specifically storytelling, I was asked to introduce VR from a business point of view. - Well that’s quite the task. Since Reed Hasting, the ceo of Netflix, in April 2015 declared that virtual reality would be the only relevant competitor for Netflix, or non-linear, on-demand viewing, I was intrigued by this new medium. Since then I have been following VR, from a business point of view, and to cover this in less than 30 minutes would be impossible. Because in less than a year, the market can be ‘easily’ summarised with the following slide:
- Slide by Tipatat Chennavasin, partner with SF based THE VR FUND He grouped the different infrastructure player, the tools/platform players and the application or content player. Additionally he also grouped these according to the most relevant use cases in VR: education, heathcare, entertainment, games, sports/live events, etc I can definitely recommend to follow @tipatat on twitter and he regularly share interesting stats and figures on the industry. Covering the different players, software, hardware and content creators in less than 30 min would be impossible. Narrowing it down to revenues today and revenues projections going up to 2020 is much easier. Before we dive into the numbers, I would like to quickly introduce myself, but also highlight the difference between 360 degree video, VR, AR and MR to make sure we are on the same page.
- In May 2016, I have co-founded, EEYOU, objective is to roll out a platform agnostic app with premium VR experiences by European producers and broadcasters. The app is the android store with 2 experiences provided by the VRT as part of the Sandbox incubation programme. Working on EEYOU, we have identified a new VR offering, this time in the B2B space, but as we are building the MVP, I can’t disclose more info at this point in time.
- Before we dive into numbers and predictions on VR and AR, just wanted highlight the difference between 360 degree video, VR and AR. Example, Bjork’ Stonemilker was widely announced as the first VR music video at the end of 2015, but effectively this was a great example of a monoscopic 360 degree video. 360 video is = video content, made with 360° degree cameras = actual photography from a number of cameras that are stitched together, to appear as a seamless whole. = 360 degree video is relatively passive, limited or mostly no interaction. A 360 video can be stereoscopic or monoscopic. Most 360 video is monoscopic using one camera per field of view. Then again, to be fully immersed, if the producer wishes to created a 3D video, the producer should use two cameras per field of view, to create a feeling of depth
- VR is inspired from video game experiences, therefore VR experiences are made with a game engine - Interaction is possible - Two sorts of VR: standing VR or room-scale VR, so no movement to full motion. The Golden Rule of VR At the lowest level, VR uses an array of sensors to precisely track the movement of your head. The computer then perfectly maps your head’s real-world movement onto your view of a virtual world. If you turn your head to the left in the real world, the computer exactly mimics your movement in the rendered world. When executed perfectly, VR tricks your brain into thinking that what you see is real, on both a conscious and subconscious level. VR = a closed and fully immersive experience that puts user inside virtual worlds. Main content makers in VR are VRSE/Within, Felix & Paul
- Augmented Reality requires computer vision and dynamic mapping of the real word environment around you. AR is an open and partly immersive experience that puts virtual things into user’s real worlds. Main players are Magic Leap, Microsoft Hololens and Google Tango are working on. Pokemon Go is a low end demonstration of what the technology will be capable in the next 5 years.Pokemon go is a location based game, not an AR game. These games draw upon Google Maps data to take advantage of local geography, landmarks and players.
- With AR, the user is looking at the real world and the device overlays virtual objects and avatars into your view so they appear to be part of the real world. With MR we flip this and you are shown a virtual reality environment where real objects can be brought in - to manipulate the virtual.
- So now that we have clarified the difference between VR and AR, we can dive into some numbers. Research provided by Digi-Capital confirms the total market to reach 120 billion by 2020.
- So 120 billion in total by 2020, according to research by Digi-Capital, - The VR market will reach 30 billion, as opposed to the AR market which will be 90 billion. - But if we look at 2017 and 2018, VR’s market size is relatively bigger. So VR could be big soon, AR will be bigger, but might take longer to get there. - AR will pass VR from 2018 going into 2019. - the VR market in 2017 is predicted to be 5 billion, total for this year will be 4 billion
- Hardware sales: Facebook bought Oculus, Google invested in Magic Leap, Apple bought Metaio, Microsoft committed to the Hololens, HTC teamed up with Valve. Hardware is the strategic high ground during platform shifts, and these guys know it. eCommerce sales: with AR/VR Amazon, ebay and Alibaba will be able to sell goods in a total new way. Adspend: From virtual banners to completely branded VR experiences as for example the travel experiences by Northface. Early research by ImmersV confirms that “Viewers engage with ads in VR much more than in mobile or desktop apps” Mobile network data: Mobile network data revenue from AR/VR could be golden for the telcos. YouTube estimates that each frame of 360 video requires 4-5 times the bandwidth of traditional video. In app-purchases: For mobile developers, In-app Purchases are one of the core business models. Subscriptions: Netflix, Amazon, Hulu, Spotify and others proved how effective subscription business models can be for web/mobile. Enterprise B2B: Served by players like mircosoft and meta, With use cases across military, medical, education, architecture/construction, maintenance and beyond, enterprise sales will be a driver for both AR and to a lesser extent VR B2B sales from AR/VR services/solutions providers will also be part of the mix. B2B revenues will come from areas like graphics engines (Epic’s Unreal Engine at the high end to bundled free services like Amazon Lumberyard with AWS), facial animation (Cubic Motion), gesture recognition (Leap Motion, Gestigon), 3D model distribution (Sketchfab) and more. High end VR games could see the highest proportion of Premium Apps, leveraging an installed base of console/PC gamers used to paying up to $60 for their fun.
- Google Cardboard numbers from: http://www.forbes.com/sites/roberthof/2016/01/27/with-5-million-cardboards-shipped-googles-vr-ambitions-gain-traction/#6f419bd541ce Hiring: *Apple: Doug Bowman, a prominent VR researcher and computer science professor at Virginia Tech. also recruited talent from Microsoft's HoloLens division and Lytro (>21 employees) 100 people in total Google: started an official VR division Microsoft: 1000 people or working on the HOLOLENS product 350,000 hours of VR video watched on YouTube 750,000 photos taken using Google’s VR camera app Alibaba, Taobao selling 300,000 VR headsets a month 1.3 million cardboards were distributed to NYT readers for free (September 2015) Oculus Rift pre-orders sold out in minutes (Jan 6, 2016) - ETA March 2016
- Google Cardboard numbers from: http://www.forbes.com/sites/roberthof/2016/01/27/with-5-million-cardboards-shipped-googles-vr-ambitions-gain-traction/#6f419bd541ce Hiring: *Apple: Doug Bowman, a prominent VR researcher and computer science professor at Virginia Tech. also recruited talent from Microsoft's HoloLens division and Lytro (>21 employees) 100 people in total Google: started an official VR division Microsoft: 1000 people or working on the HOLOLENS product 350,000 hours of VR video watched on YouTube 750,000 photos taken using Google’s VR camera app Alibaba, Taobao selling 300,000 VR headsets a month 1.3 million cardboards were distributed to NYT readers for free (September 2015) Oculus Rift pre-orders sold out in minutes (Jan 6, 2016) - ETA March 2016
- Movement solutions Tracking solutions, body parts but also full body suits VR Backpak, for example by HP
- Movement solutions Tracking solutions, body parts but also full body suits VR Backpak, for example by HP