The Future of Consumer VR and Its Impact on Video Viewing, 2016-2025

Led by the popularity of video games, virtual reality (VR) will over the next several years become a pop cultural phenomenon. It has few rivals in terms of its potential to capture global youth culture with a low-cost, portable experience that delivers truly immersive video experiences. For advertisers, VR offers a high-engagement media that immerses hard-to-reach young consumers in a branded experience. For operators and networks, the content potential is significant. Finally, social networks (led by Facebook) will transform VR from a solitary to a shared experience, dramatically increasing its appeal.

Of course, none of this means that VR’s future as a mainstream platform is certain. Questions persist. How large is the market for VR content, and what role will video play? How will marketers and advertisers influence this new medium? How should operators and networks (linear or on-demand) view the potential of VR? To what extent will VR impact the viewing of TV and movies?

These questions are examined in this analysis, as well as 10-year forecasts for VR hardware, revenue, and viewing minutes.