Hollywood embraces reality, virtual reality, and mixed reality (a combination of both) on a large scale. The Venture Reality Fund, a venture capital fund that tracks investments in the sector, reported tonight that the amount of investment in the entertainment sector in the second half of 2017 rose 79 percent compared to the same period last year.
The latest VR Fund report highlights more than 450 companies that are developing infrastructure, equipment, platforms and applications for the VR / AR ecosystem. So far, global investment in AR and VR is more than $ 2.3 billion, higher than the previous year.
"Global investment in VR and AR is higher than the previous period, and at a faster pace," said Tipatat Chennavasin, co-founder and general partner in The VR Fund, in a statement. "The VR industry is healthy and growing, and we see an increase in investor interest from traditional business funds and new VR and AR funds."
The amount of investment in VR / AR entertainment rose 79 percent in the second half of 2017 (not enough) compared to the second half of 2016. Corporate investment rose 69 percent. Tools and platforms to capture the reality of future generations up 56 percent, and investments in infrastructure for upright displays rose 47 percent.
The VR Fund evaluates more than 3,000 companies for the VR landscape (the picture above) and those selected meet certain funding, income, main coverage and / or partnership criteria. Since the company released its 2017 Global VR Landscape Q1, the number of eligible companies has increased by 30 percent.
Among insights: Major Hollywood players, including AMC, Disney, DreamWorks Animation, HBO, Netflix, Sony Pictures, and Viacom, are driving growth in the entertainment category. New experience for AAA properties, such as Star Wars, will help drive consumer interest in VR in the coming quarter.
The report also showed that the game category grew by 40 percent during this period, consistent with the success reported by Oculus, Steam VR, and the PlayStation VR combination. VR Fund estimates that more than 35 VR game titles generate revenue of $ 1 million or more, signifying a healthy early stage ecosystem for VR game studios. These numbers are positioned for continued growth as headset prices fall.
The VR Fund said that global companies such as Cisco, HP and Accenture entered the company's VR space during this period, but most of the category growth was driven by startup companies that produced revenue-generating businesses for certain industrial sectors. This trend is likely to continue during the coming quarter because the company embraces Microsoft's new Microsoft Mixed Reality headset, which offers lower prices and easier settings.
The main investment in the next generation reality retrieval space shows that a broader market is shifting from 360 degree video to true VR. Advances in screen technology are largely responsible for the 47 percent growth seen in the category of displays mounted on poles. The report also noted the announcement of a new stand-alone all-in-one device, such as Oculus Go and HTC Vive Focus. That bodes well for VR in 2018.