Problem: Due to the Coronavirus pandemic, people all over the world have been restricted from attending live events such as concerts, Nascar races, football, and basketball games as well as any other type of in person event. Naturally with people staying home due to lockdowns in response to the virus, these events have seen a loss of in person attendance which has led to a reduction in the number of tickets sold for these events.
Solution: With the increasing popularity and ease of access of Virtual Reality, a company could capitalize on the mixture of more people being at home and easier access to VR. Virtual Reality capable cameras can be stationed in various seats throughout a concert arena or sporting event. A company could utilize these VR cameras to sell tickets to a Virtual Reality version of the event via VR headsets. For people who do not yet own a VR headset, the company could rent out headsets at an additional charge.
Greenlight Insights has recently even conducted a report to understand consumer habits. As Alexis Macklin, an analyst with Greenlight Insights, describes “younger consumers were most interested in using VR for live events…. So we’ll see this market grow as these younger generations grow as well,” she said. In a recent Citi Research report, analysts predict that the overall virtual reality/augmented reality market could reach $692 billion by 2025 and continue to increase after that.
An article by Wired further built on this idea,
Over the past few years, the tech community has accepted that VR was poised to go mainstream. The question was what form it would take. While many assumed that VR would primarily be a vehicle for games and movies, a recent poll by the Consumer Technology Association found that consumers’ most popular suggestions for VR content were for concerts, sports and exercise. Data from Greenlight Insights’ 2017 survey also found that 65% of consumers said they were interested in live events and 58% said they were interested in sporting events. That compares to 65% for gaming.
Some firms have already began exploring digital events as a substitute for live events. As reported by WeForum:
These new ways for musicians, labels and venue providers to engage with followers might be a strategy for stronger long-term connections with audiences. The industry is getting behind such efforts: Vivendi, for example, has developed a platform for artists to perform, engage with fans and share content – it makes no money from the platform itself, but indirectly benefits from royalties and sponsorships. And Verizon is working with partners such as Live Nation Entertainment to organize virtual events and video series.
What most of these platforms miss, however, is the VR and futuristic aspect of these events. This is the gap that this business would address. Some examples of new stories and larger business motions in the space include: NextVR (which “has raised more than $115 million over the last decade” and was acquired by Apple), Citi, Live Nation, and other competitors as well.
Monetization: Sell tickets in a similar manner as if these were traditional live events. Depending on if the viewer has access to a VR camera or not, the company can offer standard tiered tickets or, a VR headset rental service if booked in advance of the event. The company would need to have a contract signed by the viewer/VR renter that allows the company to charge the renter for the full price of the headset if the headset is returned damaged or not returned to the company at all. The company can utilize traditional tiered ticket pricing with more premium VR seats being more expensive. A VR event like this would not require as many employees to make sure the event runs smoothly, reducing overhead costs. This can translate to more overall profits in comparison to traditional in person events. Covering a wide range of events will ensure diversity and allow this venture to reach as many people as possible to increase potential profits.
Contributed by: Steven Marinelli (Intern at Billion Dollar Startup Ideas)