When a new technology comes along its first iterations are normally clunky and costly (think of the first MP3 players) but after a trickle down process, they suddenly go mainstream. According to a new study from PwC virtual and augmented reality are about to reach a tipping point.
The 'consumer VR content market' will grow at a compound annual growth rate of 77.0% over a five-year period and be worth more than $15.1bn by 2021.
Around 257.2 million VR headsets will be in use by 2021 according to PwC's Global entertainment and media outlook 2017-2021. 88.5% of these units are expected to operate in conjunction with smartphones.
PwC also expects e-sports to continue to grow. According to its data, the industry is set to be worth $874m by 2021. As recently as 2012 it was only worth $42m.
Low-spending markets will be the fastest-growing. Nigeria's entertainment industry is expected to register the greatest increases. Japan is set to have the slowest expansion rate.
Deborah Bothun, PwC global entertainment and media leader, commented on the report's findings: "Accelerating change in technology, user behaviour and business models has opened up a gap between how consumers want to experience and pay for entertainment and media offerings, and how companies produce and distribute them.
"The right user experience bridges this gap. To deliver it, companies must pursue two related strategies. First, build businesses and brands anchored by active, high-value communities of fans, united by shared passions, values, and interests. And second, capitalise on emerging technologies to delight users in new ways and provide superior user experiences," she continued.
