Whitefish, MT / November 6, 2014 / Most people have seen a "virtual tour" of something, such as videos of houses for sale on Zillow (NYSE:Z) or the new virtual tour of the One World Trade Center observatory, but that technology still doesn't really give a person a feeling of being there because it still lacks a full perspective. Imagine when the user is in full control; able to back up, look down and around and the video responds accordingly. What about any audio, which still lacks direction in existing so-called virtual tours? That's what virtual reality (VR) is going to bring to the table and it's going to transform much more than just gaming with its endless possibilities and applications.
Travel, Advertising and Auto Industries Tapping Power of VR
Consider what VR could possibly do for the travel industry and companies like Expedia Inc. (NASDAQ: EXPE) or Orbitz Worldwide (NYSE: OWW). A library of fully immersive experiences from popular and exotic destinations around the world sure could help potential travelers make decisions and book travel plans. Even a cruise ship operator, such as Carnival (NYSE: CCL) could try and entice vacationers with ship and destination tours. Global hotel operator Marriott (NYSE: MAR) is already conducting an experiment where guests can "get teleported" to check out virtual destinations in an interactive virtual world using the Oculus Rift, the VR headset being developed by Facebook (NASDAQ: FB). In the research, which includes virtual tours of Wai'anapanapa Black Sand Beach in Maui and Tower 42 in London, Marriott gives newly married couples a glimpse of the destinations and then asks if it makes them want to take a trip, as Marriott aims to dial-in marketing for the next generation of travelers.
Global leisure travel group Thomas Cook is making a move in the same vein, launching a VR experience using the Oculus Rift for visitors at its all new Concept Stores in England. In a statement announcing the initiative, John Straw, Chairman of Thomas Cook's Digital Advisory Board, provided some insight on VR and travel, saying, "The technology advancements in virtual reality over the last 18 months have made it a real contender for playing a key role in changing the way we can showcase experience-based products to our customers, especially in the high street environment."
Coca-Cola (NYSE: KO) is also delving into the VR world as brands turn advertising into entertainment, staging a VR experience near Maracana Stadium in Brazil at this year's World Cup. Users strapped on Coke-logo clad Oculus Rifts and were able to exit the locker room onto the pitch to score a goal; all without leaving their seat.
In the age where there is often little difference between products from different brands, VR can help separate Brand X from Brand Y and influence consumers to buy their product. In other cases, companies are looking to employ VR to deliver demonstrative evidence that their products are superior to competition. VR company Virtalis shared a case study on their website in which they were working with the Fiat Group (OTC: FIATY)(NASDAQ: FCAU) on a sophisticated immersive system to compare driving experiences that even allows seats and steering wheels to be changed to simulate difference car types of Fiat and competitors. Toyota (NYSE: TM) uses VR at its Lexus headquarters in Japan to test and measure variables in different driving conditions and developed a Lexus RC F Virtual Reality simulator that is meant to allow consumers to experience its performance vehicle.
As it stands, companies only have the option of demonstrating their new VR strategies at events, but the overarching theme is that pricing is going to be competitive from the outset of VR consumer headsets reaching the public worldwide, leaving it a wide open space for companies to capture market share. The Oculus Rift is clearly the high-profile name in the VR headgear business, but other companies are developing their own versions, including Sony's (NYSE: SNE) Project Morpheus, Samsung's (OTC: SSNLF) Gear VR and many other smaller players, such as Vuzix, Inc. (OTC: VUZI). These, and other companies, will be vying for a piece of the industry that research firm MarketsandMarkets forecasts will generate $1.06 billion for VR manufacturers and augmented reality products by 2018.
So What Other Entertainment Industries Can Be Transformed?
Movies and Sports are obvious choices for VR to prosper as on-demand and online content flourish. In fact, Oculus VR CEO Brendan Iribe recently told Bloomberg that Hollywood is getting very excited about the possibilities of VR as the next generation of real-time cinema. For starters, consider seeing a movie in a fully-immersive 3D or 4D fashion; the possibilities are nearly limitless to experience a film like never before. There's the classic style of movie which will certainly still exist in a VR setting that's promising enough, but with omni-directional sound, users can be prodded different directions to investigate what's happening in different areas. Alternative endings are popular now and letterbox format was essentially a function of giving viewers more action and details. Taking that to the next level, the whole paradigm of how movies can be created changes with VR visuals and VR audio. Think about that, as it could require watching the flick more than once to see things that were missed or to explore different scenarios as going down one alley could have a completely different outcome than another. The drastic change in format in general will likely take some getting used to, which is why filmmaker Emiliano Ruprah says he's keeping his VR movie Snake River to around 20 minutes to allow viewers to acclimate to the new format, but one day this could all be "normal."
In any stadium or arena, there are only so many prime seats available (i.e. sky box, front row) for a sports venue, but VR changes that as sports fans will have the choice where they want to sit and watch the venue. In reality, it brings the game to the fan, instead of vice-versa, bridging borders through connectivity that never leaves a fan outside of a sold-out stadium. Users will be able to watch not only from the front row or owner's box, but it could also be from the perspective of on the playing surface with 360-degree cameras placed on the things like a hockey net or goal post. Iconic Syracuse University basketball coach Jim Boeheim, the second winningest coach all time in college basketball history, has joined the VR revolution, teaming with Next Galaxy Corp. (OTC: NXGA) in September. Boeheim told CNBC's Squawk Alley and Fox Business that as a sports fan he is excited about Next Galaxy's technology, which covers both VR software and hardware designed to complement VR headgear, such as the Oculus Rift and Samsung Gear VR.
Next Galaxy, a tech company and VR content creator, is bringing to market Ceek.com, a "virtual city" and entertainment hub slated to feature a wide array of corporate-created and third-party VR content, including sports, education, concerts, travel, e-commerce and more. In addition to its sports initiatives, Next Galaxy has formed partnerships with people in the music industry, including Grammy-nominated music producer Willie "Bum Bum" Baker, who has worked with the likes of Beyonce and Pink. Founded by Mary Spio, a former Boeing engineer that developed the technology that led to widespread adoption of distributing digital film via satellite, the company is ahead of the curve with VR audio, readying to bring to market a first of its kind virtual reality audio headset called Ceekars(TM) that provide dynamic, reactive sound in parallel with immersive video, completing the VR experience. Next Galaxy has taken its technology global, announcing a new partnership this month with Annex Telecom, one of the largest Mobile Virtual Network Operators in Korea, to create and market VR content catering to the Asian population.
VR: We are Young, But Growing
Even though the idea of VR has been around for decades and gone through limited uses, the fanfare about its potential is finally culminating into what will likely be widespread consumer applications in the next year or so. It's still going to take time, as developers are not in a huge rush; instead rightfully so more concerned with, as Oculus' Iribe puts it, "getting it right." There are going to be plenty of transformations in the years to come as VR headgear morphs into smaller versions of eyewear from the ski-google look that they currently have, but the technology as a whole is truly starting to take shape with great anticipation of the many uses. Above is merely a snippet of the opportunities at hand and some leading players (as it doesn't even touch on gaming, education, concerts, shopping, social networking, etc.), but it should make it pretty clear as to how VR can transform the way we experience a great many things in the near future.
Legal Disclaimer:
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx
SOURCE: Emerging Growth LLC