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Stand-alone headsets may propel virtual reality to next phase

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Stand-alone headsets may propel virtual reality to next phase

Despite the relatively slow adoption pace and lack of scripted content for virtual reality services, executives at an industry conference believe progress is being made and likened its promise to the early days of platforms that subsequently became ubiquitous.

Frank Radice, expert-in-residence at the global marketing agency, Definition 6, who moderated a panel at Digital Hollywood’s 2018 "Media Summit New York," said the current state of virtual reality and augmented reality reminds him of when the internet was getting started. "We’re seeing that kind of moment in the space now," he said.

Aaron Luber, head of AR/VR content partnerships at Google Inc. said he is "astounded" by how far VR has come despite significant barriers to entry from high-price points for headwear, goggles and attendant computers, to having to position a smartphone within Google Cardboard to view content on the low end. Either way, "it takes a lot of time and interest to set things up," he said.

The high cost of such equipment as Google Daydream View, Samsung Electronics' Gear VR and Facebook Inc.'s Oculus Rift is one thing, but the "dorkiness factor of the headsets" cannot be overlooked, said Jason Farkas, vice president of premium content video at CNN (US). The industry has to make the devices "seamless enough, light enough, cool enough, so people don’t feel ridiculous in wearing the gear. VR has suffered for that."

Farkas said the long-term goal is VR "eyewear that is elegant looking, not a gadget on your head."

Although not quite the sunglasses set-up that others have predicted will eventually push VR to new heights, Luber said he is "very bullish about the next phase." The emergence of stand-alone headsets at lower price points that are coming to market is expected to broaden the growth path for VR, he said.

On the production side, it is still early days, with projects varying greatly from what NextVR Inc. and LiveLike Inc. are doing with sports, to news coverage, and the presentation of experiences from iconic and exotic locations that most people will never get to visit in person.

Lora Feinman, vice president of sales at Jaunt Inc.'s Jaunt VR, said the company has produced experiential content for American Express, drink responsibly public service messages for Diageo, and filmed open heart surgery in the format for Medical Realities, which is using it for training purposes.

Joanna Popper, global head of VR and location-based entertainment at Hewlett Packard Enterprise Co., said VR and AR have gained traction in the enterprise space as companies like General Electric Co. and Lockheed Martin Corp. have used the technology to teach employees about various manufacturing skills, which have resulted in double-digit cost efficiencies.

Farkas said that over the past few years CNN has been training journalists and producers in VR shooting and story-telling techniques at 15 of its bureaus around the globe and has generated 100 stories. CNN is releasing six new documentaries on its new app for Oculus Rift on March 8. About 99% of the VR projects CNN has engaged in have been editorial driven.

Feinman said Jaunt has produced over 300 pieces of VR content, much of it customized for various companies. She said that over the last six months, more marketers have been reaching out to Jaunt. "Many brands are just beginning to figure out ways they can activate around VR," she said.

Sponsored content aside, there is not any advertising, per se, in Jaunt’s app because the viewership is not big enough at this juncture. But Feinman said Jaunt expects to offer advertising in the near future.

HP’s Popper expects five factors to help boost the VR industry over the next couple of years: continuing technological advancement; more location-based experiences where the barrier of entry for people to experience the platform is a ticket costing $10 to $50 for an hour of entertainment; enhanced social integrations so users do not feel isolated while engaging with the technology; and more sophisticated campaigns that will "market experiences, not widgets."

She also noted the industry is still looking for the "killer TV brand app" that will drive awareness, interest and purchase, akin to what "House of Cards" and "The Handmaid’s Tale" did for Netflix Inc. and Hulu LLC, respectively.