Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SVVR 2016 - The Business Of VR (4.28.16)

698 views

Published on

Sivan Iram
www.riverstudios.com

Published in: Technology
  • Be the first to comment

  • Be the first to like this

SVVR 2016 - The Business Of VR (4.28.16)

  1. 1. THE BUSINESS OF VR APRIL 2016 Sivan Iram sivan@river.co @sivaniram
  2. 2. “…a new computing platform always emerges every 10 or 15 years…” —Mark Zuckerberg, 2/28/16 Internet 1995 Mobile 2006 VR 2016
  3. 3. APPLICATIONS Music Social Live Sports Games Journalism Real Estate Entertainment Training Retail Health Education Productivity
  4. 4. Virtual Reality Market Forecast $150Bn market Augmented and Virtual Reality market to hit $150 billion revenue by 2020. [Digi=Capital Report] 13,000% growth Virtual Reality Market Expected to Grow by Over 13,000%in next 3 Years, Nearly5Times faster than the iPhone.[Kzero.co.uk] 12.2m headsets 12.2 million VR headset devices to be sold in 2016. [Piper Jaffray] 7.7bn software Cumulative VR software revenue from 2014 to 2018 estimated at 7.7bn. [Kzero Report] References: www.digi-capital.com piper2.bluematrix.com www.kzero.co.uk
  5. 5. INVESTORS ARE MOVING IN AR/VR Investment Activity Q1’12-Q4-15 Stock Changes In Last 3 Months 17% 30% 13% 16% 42% $2B $56M $35.5M $100M $38M $22M BIGGEST Deal
  6. 6. TECHNOLOGY ADOPTION RATE 0 5 10 15 20 25 30 35 40 45 50 Electricity Telephone Radio TV PC Mobile Phones Internet Smart Phones Time To 25% Market Adoption (US) 1900 1950 2000
  7. 7. • First mobile phone invented in 1983, it took 13 (!) years to become commercially available. • It took smartphones 6 years to reach the early majority. • If we begin the count with the release of the Oculus DK1 (3/13), it early majority adoption will occur in 2019. • We believe VR would be sooner. SMARTPHONES ADOPTION RATE
  8. 8. CONSUMER PRICE POINTS Headsets Content $800 $400 $99 $30 $10 Free Vive Rift PSVR Gear VR, Merge VR Smart VR Cardboard, Go4D Magic Window Vive Vive Rift, Vive Rift, Gear VR Cardboard, All
  9. 9. “The High Cost Of Pricing Low” • Don’t only think about device cost, think Customer Lifetime Value • Consumer $ supports content development • Apple users spend on content 4x compared to Android users - $200 vs. $50 (Fortune 2014) • Premium prices on devices preserved on content and accessories Pricing headsets low democratizes access, but also anchors low perceived value.
  10. 10. VR ENTERTAINMENT DISTRIBUTION • Free for users • Maximum exposure • Ad-rev model • Requires user volume User Generated Content (UGC)Marketing Free Content For Consumers • Paid by consumers • VOD/Subscription Film, Music, Sports Premium Content (Paid)
  11. 11. SUMMARY • Every major tech company is investing in VR, and the market values it. Early consumer signals are STRONG • The fact that mass consumer adoption is “4-5” years away, doesn’t mean we can’t build great valuable businesses TODAY • Not all content is equal. Some content should NOT be free. • Don’t be pressured to eliminate margins to “force” adoption • Build KILLER apps. Think 10x experiences
  12. 12. Q&A 1. Reach out: sivan@river.co, @sivaniram 2. Download our app: RiverStudios (Available via AppStore & Google Play) 3. Visit our website: www.river.co 4. Tweet about us: @RiverVR

×