Challenges of offering virtual reality in location-based entertainment venues include technology, content and business models risk, according to Greenlight Insights’ new LBVRE Market Report.
SAN FRANCISCO (July 17, 2017) —Greenlight Insights anticipates that the Location-Based Virtual Reality Entertainment (LBVRE) sector will reach $1.2 billion by 2021. This is according to new research in which Analyst Colin McMahon analyzed the future of LBVRE, interviewing and researching key players such as IMAX, Dave & Busters, Six Flags, The Void, and Survios.
In this new report, Greenlight Insights outlines what venue operators, studios, vendors, and investors should expect now that there are more than 800 LBVRE locations operating worldwide. While the industry is expected to be a billion dollar industry within the next five years, companies preparing to participate this rapidly growing market face a number of challenges, including:
- Technology constraints. As LBVRE becomes a growing sector, key market players, such as HTC and Starbreeze Studios, are developing hardware that can accommodate multi-system, multi-player functions. LBVRE venue operators find untethered headsets a must, adding pressure to HMD giants to cut the cord.
- Shortage of channel-specific content. Currently most LBVRE venues offer experiences designed for in-home use. Instead, more content needs to be designed specifically for LBVRE, including multi-player, interactive experiences, which will greatly increase the opportunity for repeat business.
- Legal confusion. Most venues operators and vendors are newly formed companies, and thus struggle to navigate unsettled legal and business best practices for hardware licensing and content distribution.
- Non-standardized pricing. The current dominant pricing method charges attendees for time slots. However, LBVRE venue operators must often cut pricing by as much as 50% during non-peak hours.
“Major industry players will find these challenges easier to overcome as they are well positioned to incorporate new technologies as they emerge, fund content development, and experiment with different business models,” said Colin McMahon. “Newcomers must be deliberate in how they address these considerations to maximize their chances for success.”
For more information, including how to purchase this report, visit Greenlight Insights.
About the LBVRE Market Report
The Location-Based Virtual Reality Entertainment Market Report by Greenlight Insights includes everything you need to know about virtual reality at entertainment centers, theme parks, and other out-of-home venues. Report highlights include:
- 5-year global forecast of spending on hardware and content at LBE venues
- Insights on how new technologies are transforming the market landscape
- Profiles of major and emerging companies
- Business model metrics
- Analysis from in-depth interviews with venue operators, studios and vendors
Share this Post