VR video revenues to reach $8 billion by 2021, says PwC
VR video revenues will exceed interactive and virtual reality gaming revenues by 2019, according to a report from PricewaterhouseCoopers. In total, consumer VR content is expected to generate revenues of about US$15.1 billion by 2021, of which $8 billion will be spent on VR video. This figure will rise at a CAGR of 91.2% and will surpass VR games revenues as early as 2019, according to PwC.
The figures, released as part of PwC’s ‘Global entertainment and media outlook 2017-2021’ report, will be a shot in the arm for VR filmmakers. Indeed, Hollywood studios have been pumping investment into VR while smaller independent’s such as Baobab Studios, have staked their future on VR, despite detractors making comparisons between VR and technologies like 3D TV which generated significant hype but failed to gain traction.
Clyde DeSouza, a VR filmmaker based in the UAE and founder of Real Vision consultancy, said the research appeared to be “on track”. “I think the PWC report might be on track in stating video based VR will overtake gaming and apps. If you look at apps that the general public might use in VR, what comes to mind is an office like productivity suite allowing one to edit on a huge Virtual screen, meanwhile just like the movies – you can’t have enough of video VR. So, while VR’s primary immersion and interaction will be games, I think a unique niche will be carved by video based VR, which allows the bridging of linear story with interaction. The best of both worlds.”
Until now, VR headsets from the likes of Oculus, Samsung and HTC Vive, have been perceived as being more for gaming than viewing films or broadcast content. However, recently there have been signs of change with sports event such as the NBA finals being broadcast in VR, courtesy of NextVR.