Current VR Experiences Lack Context Required for Real Engagement

Published April 21st, 2017

The Virtual Reality industry will surpass $10Bn in revenues globally by 2022. Nike AIR Max 2017 Dames Zwart Wit This growth will be driven by the creation of compelling experiences that allow the user to Experience, Preview, and Escape reality. Nike Free TR Fit Goedkoop While the virtual reality (VR) market is poised to grow tremendously over the next several years, a recent study from the User Experience Strategies (UXS) service discovered that current VR experiences lack the type of context required for real engagement with the medium. Nike Air Max Thea Print Heren The research further adds that the growth in VR market will be driven by the creation of compelling experiences that allows users to experience, preview, and escape the reality. Early adopters of VR are the predominant gamers who are driven to the medium with the promise of ‘being there’. Nike Air Max 2017 Dame Goedkoop However, the biggest risks for the VR market are lack of context, lack of social capabilities and the hard-wired headset restricting player movement. Nike Air Max 90 Bloemeny Heren&Dame “There are a number of ways that VR can be made more compelling: design content from the ground-up for VR to make use of its immersive properties; contextualize VR experiences to provide real emotional engagement with the content; and ensure sensory engagement with VR content through the ability to touch, see, and hear what’s happening in virtual spaces.” Commented Mathew Alton, Research Analyst and report author.

The Nordics lead the SVOD market in Europe

According to the recent data from Dataxis research, the Nordic region comprising Denmark, Norway, Sweden and Finland leads the SVOD market in Europe. According to the report, Nordic region represented 20 percent of all SVOD subscriptions in Europe in Q4 2016 and in the same quarter number of SVOD subscriptions in Nordic region were equivalent to the number of subscriptions in Germany and Italy. The average revenue per user (ARPU) for each SVOD offer in Nordic is higher than in the rest of Europe. Nike Air Max 2014 Dame Dataxis estimates that the ARPU per offer in Nordic was around $10.6 in Q4 16 and this is explained by the fact that SVOD offers in Nordic cost relatively higher than in the rest of Europe. Nike Air Max 90 Honeycomb Heren For example, the standard offer of Netflix costs 89 DKK ($12.7) in Denmark versus 9.99 EUR ($10.7) in France. Consequently, there is a higher SVOD spending per person in Nordic than in the rest of Europe. Nike Air Max Heren According to Dataxis, the total customer spending on SVOD in Nordic reached almost 800M EUR ($848.2M) in 2016. There are four main SVOD actors in the Nordics: Viaplay, HBO Nordic, C More and Netflix, with the later accounting for almost half of the market. Nike Darwin Goedkoop • Netflix: Launched in Q4 2012 in Nordic. With its early launch, Netflix has immediately dominated the Nordic SVOD market offering local and international content in the language of each country. • Viaplay: Launched in 2011, it’s the historical actor in Nordic. It expanded in Estonia, Latvia and Lithuania in July 2016. Air Max 2015 Heren Goedkoop • HBO Nordic: Launched just after Netflix in Q3 2012. HBO offers SVOD only in Nordic but faced some constraints at the beginning to get subscribers because the offer was not aligned on Viaplay and Netflix: no free trial and 12 months’ mandatory commitment. • C More: C More, a pay TV actor, launched Filmnet in October 2012 in Sweden and in 2013 in Denmark, Finland and Norway. In 2015, Filmnet moved to C More website.An interesting move in term of monetization is the launch of SF Kids Play (an SVOD offer for kids) in Nordic in February 2016. SF Kids Play is the first SVOD offer of the giant TVOD actor in Nordic, SF Anytime (Bonnier AB Group). The launch of Amazon Prime Video in December 2016 in more than 200 countries including all the Nordic countries is going to intensify the competition and could change the top 4 in 2017.