The virtual reality market is growing rapidly and it shows no signs of slowing down. This growth is being driven by advances in technology and the increasing popularity of VR gaming and entertainment resulting in the form of the metaverse.
Technological growth isn’t just something that is affecting the gaming and entertainment industry, but also the film industry too. Ideal Insight explored the evolution of the metaverse and what impact it would have on the film industry.
With that in mind, while video streaming services have grown in recent years, will they be able to keep up with the future evolution of the concept of the metaverse?
Why does it Matter?
The metaverse is a term that refers to a virtual reality world that is created by humans and inhabited by avatars. These avatars can be controlled by their users, and they can interact with each other in the virtual world.
John Canning who spoke at a Geneva Digitial Market panel revealed in an interview that:
“The Metaverse is the next big frontier of the internet and the framework is already being built.”
This prediction is based on the current state of technology and its potential. The framework for the metaverse is already being built by companies such as Microsoft, Facebook, and Google.
How the Metaverse is Creating a Competition line with Streaming Services
It is still too early to say how this will all play out, but it is certain that the metaverse will have a major impact on the video streaming industry. Here are 5 ways how metaverse put these streaming services into a competitive market:
1. Rising Cost of Content Acquisition
The streaming wars are heating up due to the evolution of metaverse, and there are no signs of them slowing down anytime soon. With so many companies vying for a piece of the pie, it’s becoming increasingly difficult for streaming video providers and studios to turn a profit. One of the biggest challenges they face is the rising cost of content acquisition and development.
With more and more younger generations adopting paid streaming video services (SVOD) and ad-supported (AVOD), studios are feeling the pressure to produce A-list content that will keep viewers subscribed month after month.
This has led to an increase in prices for top-tier talent, as well as an increase in spending on marketing and promotion. Moreover, the cost of acquiring and developing new IP has also gone up, as studios are taking more risks in an attempt to stand out in a crowded marketplace.
The evolution of the metaverse can be one of the reasons for the rising cost of content acquisition.
2. Providing Passive Entertainment
The metaverse offers a form of entertainment that is very different from what video streaming services currently provide. In the metaverse, users will be able to interact with each other and with the environment in a way that is not possible in the real world.
This will allow them to create their own stories and experiences, which they can then share with others and explore together. Still, many streaming services like Netflix are trying to engage their viewers by creating interactive content.
However, these efforts are still in their infancy, and it remains to be seen whether they will be able to compete with the metaverse.
3. The Metaverse is a Global Platform
The metaverse is not limited by geography, which means that anyone in the world will be able to access it. This is in contrast to video streaming services, which are often only available in certain countries.
This global reach will be a major advantage for the metaverse, as it will allow users from all over the world to connect with each other and create new experiences.
In addition, the metaverse will also be able to tap into global markets that are currently not served by video streaming services. Streaming services need to open up their platforms if they want to compete with the metaverse.
4. Competition with Continuous Change in VR
Rapid change is one of the defining characteristics of the VR industry, and this will be a major challenge for video streaming services. They will need to keep up with the latest technology in order to provide a competitive product.
Video streaming services will not be able to keep up with these changes, as they are limited by the technology that they currently use. No doubt, streaming services are coping with the changing times, but it would be difficult to compete with the rapid and continuous advancement of the metaverse.
5. Significant User Base
Though streaming services are already having a large user base, the metaverse will be able to tap into even larger markets. Luckily, streaming services are not the only ones that are feeling the pressure to produce A-list content; social media platforms, such as Facebook and Snapchat are also feeling the need to step up their game.
As a result, their significant user base will also be able to provide the metaverse with a large and active user base. It will provide the metaverse with the critical mass it needs to survive and thrive.
The metaverse is a new and exciting platform that offers many advantages over video streaming services. It is global, immersive, and constantly evolving. On the other hand, streaming services are also improving their offerings, and they are not going to disappear overnight.
They will continue to play a role in the entertainment landscape by spending billions of dollars on A-list content. This may be good news for the entertainment industry in the short term, it’s uncertain how long these companies can sustain such high levels of spending.
Only time will tell how this all plays out, but one thing is for sure: the streaming wars are just getting started.