Editor | Jan 12, 2018 | 0
Broadcast of live events in VR to generate $4.1bn revenues by 2025
The broadcast of live events including sports, concerts and even political rallies could generate revenues of $4.1 billion by 2025, according to predictions from Goldman Sachs.
“We believe live events will be a popular use case for VR users and estimate 30% penetration of our client-case installed base which equates to 28mn users in 2020 and 95mn in 2025,” the company said in recent research report on VR.
Goldman Sachs worked on estimates that users of VR will initially watch two events a year, but this will almost double as more content becomes available by 2025.
The predictions were partly based on an analysis on current revenues and attendance figures from live events. The report pointed out that gate revenues from global sporting events reached $44bn in 2015, although revenues generated from sporting events was closer to $145bn when including media rights (worth $35bn), and sponsorships ($45bn) and merchandising ($20bn).
Judging by recent developments, VR for sports broadcast might take off sooner than Goldman Sachs expects. Just days ago FOX Sports signed a five-year partnership with VR broadcast specialist NextVR to offer fans live virtual reality coverage of the nation’s top sporting events.
Interestingly, Goldman Sachs does not believe that VR will cannibalise live ticket sales, but will instead offer a new revenue stream for events. “We believe VR has the potential to create new revenue pools in the form of new ticketing and subscription fees charged to sports fans that want to watch events in VR but can’t attend the live event. Further, media rights revenue is likely to be expanded as the likes of the NBA and FIFA will have more outlets to licence to,” the report stated.