VR / AR: A new Reality?

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Communications & Media Industry —A Futuristic Outlook

11 min readMay 9, 2023

The tailor told us we had to wait another 40 minutes to get our trousers fitted. Now we had to find a way to kill the time, in a mall buzzing with families on their weekend shopping sprees. We decided exploring ‘fun-zone’ was the best thing to make our sometimes not-so-fun lives, fun.

Amidst the huzz and buzz of people playing air hockey and hit-the-mole, a scene caught my attention. A little kid, no older than 10, was waving his arms around frantically with an overgrown eyeglass fitted to his little face. On a screen above, a series of boxes rushed forward while a magic sword flew around, cutting them into halves, thirds, and quarters. At 10 years old, through VR, the little guy is experiencing a whole different dimension of reality!

VR? AR? What are even those?

A decade or two earlier, it would have been only natural for one to wonder what in the world the little kid was doing. But now with the rapid penetration of the internet and internet-supported devices, new and fresh innovations seem to spread like wildfire, especially among the younger generations.

This proliferation of ideas has two extremes — acceptance and denial. For one to readily accept a change in one’s way of living or behavior (and consequently adopt an innovation), one must have a coherent idea of the concept. After all, humans fear what we do not understand.

So, for AR/VR technology to be a success, the stakeholders need to understand what it is, how it works and why it should be used. On our path towards that, let us look at what this reality-bending technology really is.

By Google’s definition, Augmented Reality (AR) and Virtual Reality (VR) bridge the gap between the digital and physical worlds. They allow you to consume information and content visually, the same way you take in the world.

AR integrates the physical world with real-time information presented in the form of visual enhancements like graphics, audio, and text. VR on the other hand, generates an environment around the user and lets the user interact with the 3D environment.

Simply put, AR brings the digital world into the physical world while VR pulls the user into a digital world from the physical world.

This article will not delve into the deeper details of how exactly technology works. The aim here is not to help readers build AR/VR software but simply to help them understand it. Thus, a much more simplified version is presented below.

Augmented Reality works with devices equipped with cameras. When the camera is pointed to physical objects, the video stream thus captured is analyzed by the AR software, which then downloads the appropriate information from the cloud. The downloaded data is then presented on a display device to be consumed by the user.

On the other hand, Virtual Reality is generated in devices with an LED screen and a lens positioned between the screen and the users’ eyes. The screen shows two images, one for each eye, which is then distorted by the lens such that it looks 3D and realistic. The projected image also changes as the device is moved around to emulate turning our heads.

Now that we have alleviated the fear of AR/VR tech (fingers crossed), we must go to the other extreme, i.e., acceptance. So, the next logical step is to help the stakeholders understand the benefits they will receive from usage of the technology.

Why would CEOs care?

According to a report by Grandview Research, the global market for virtual reality was valued at US $ 28.41 billion in 2022 and has an expected CAGR of 13.8% in the period of 2023–2030. At the same time, the global market for augmented reality was valued at US $ 25.33 billion in 2021 with a projected CAGR of 40.9% from 2022 to 2030.

For VR technology, the Asia-Pacific region accounted for the largest revenue share (40% of global figure) in 2022. This is mainly driven by countries like China who are major producers of VR-related hardware. The large production facilities in the region drive the demand for automation through VR technology.

Meanwhile, Europe is expected to show the highest growth at a CAGR of 15% during the forecasted period. With a large population of gamers, the development of high-end gaming VR technology has accelerated the growth.

In the case of AR technology, North America accounted for 33.9% of global revenues. Being home to tech giants like Google LLC and Microsoft, the country is rightly considered an early adopter of fresh technology. Europe follows closely with increasing adoption of AR in gaming and entertainment applications.

The Asia-Pacific region is poised for rapid growth in AR technology during the forecasted period. The growing penetration of high speed 5G network and implementation of internet-based platforms by developed countries like Japan and Australia will drive the market up this ascent. India, with its large population and rapid internet penetration is emerging among the leaders in utilizing AR for the manufacturing and healthcare industries.

From the above figures, it would not be foolish to assume that the AR/VR market has huge opportunities waiting to be captured. However, one still must take caution. Apart from risks like being replaced by a newer and better alternative (which can never be zero), businesses must ensure they are offering differentiated and valuable products to consumers. After all, customers are the sole reason businesses survive and exist.

This brings us to our next question, what do consumers derive out of this technology?

Forget CEOs. Why should YOU care?

Why do businesses exist?

To earn profits, create value for shareholders and all the other things B-schools have taught us to do. But more importantly, Jamsetji Tata, the founder of the TATA group rightly said, businesses exist for the people in the community.

So, to that end, let us take a quick look at what AR and VR can change and benefit the world we live in.

As a self-proclaimed basketball enthusiast, I have spent many a night staying up till the wee hours watching NBA games. I have also spent a fair amount of time plotting on how to possibly watch a match in person. Now, NBA tickets are not cheap. The recent playoff clash between the Golden State Warriors (the current champions and my personal favorite), and the Sacramento Kings averaged ticket prices at a whopping $821, with courtside tickets costing as much as $15000.

Those figures are straight up scary for fans from developing countries such as India. So, must fans like me make our peace with watching these high octane matches out of a flat screen?

Not necessarily.

Luckily for us, the NBA has started rolling out VR live streaming of games in the US through a partnership with Meta. Using the Meta Quest VR headsets, fans are now offered a 180-degree courtside view of a live NBA match. As a fan, you just cannot help but feel excited at the thought of seeing Stephen Curry hit a half-court 3-pointer right in front of your seat!

Throughout the years, the NBA, under Adam Silver’s leadership, has been experimenting with additional ways of bringing the action home to fans. The NBA was praised for its smooth handling of games and live streaming during the COVID pandemic. However, the VR streaming of live streaming games has been a work in progress.

Although the idea is novel and interesting enough, it has faced problems in gathering a steady consumer base in its previous stint with NextVR. Keeping the technological hurdles aside, the irregular coverage of games and the limited penetration of VR headsets can be potential culprits for this.

However, the NBA through its partnership with Meta have increased the number of VR-live games to 52 this upcoming season. Also, with the growing adoption of VR technology and its increasing penetration, we can hope to see a day where live streaming of games through VR headsets is accessible to the masses.

The NBA has also recently introduced an AR feature where users can scan their physical appearance and project that 3D model onto real players in game replays. Adam Silver demonstrated this feature by scanning a fan using his phone on stage, and then projected his likenesses onto an in-game player — Taylor Horton Tucker, who then proceeded to dunk the basketball right on an opponent’s head. Using this feature, users can now see themselves performing the exact same moves as their beloved superstars. Such additions will help improve the fans’ engagement with the game.

Looking closer into the partnership between the NBA and Meta, this deal stands to benefit both sides.

As of now, VR live-streaming is done through Meta’s VR-world ‘Horizon Worlds.’ Meta has sold 20 million units of their VR headsets, much more than their competitors like PlayStation VR, however, they have been struggling with keeping their customers engaged. Creating an additional means for customer engagement will help its cause. Also, not only will this partnership create more engagement from customers, but it can also help Meta target a whole new customer segment, i.e., basketball fans.

The deal also opens the doors for Meta to potentially partner with other sports leagues in the future. With this, Meta is on track to gaining a larger chunk of the VR headsets market.

The NBA generates revenue from sponsorships, television, merchandising and tickets. Contrary to initial thoughts, tickets are not the main source of revenue for the league. Large chunks of the NBA’s revenue are derived from sponsorship and merchandising sales.

The VR experience will create a more engaged and invested fan base which will only lead to better merchandise sales and will attract sponsorships from other brands. So, the NBA can even give VR tickets at a cheaper price and still be better off for it.

On the other side of the spectrum, the move towards VR streaming may threaten the NBA’s current streaming partners. These partners may feel that this move will eat away at their viewer base and thus pull their businesses down.

Now, you might ask, how is this relevant to everyone else who is not a basketball-head?

Fret not, my friend. Such technology is not limited only to professional basketball. Think about all other sports like football, boxing, racing, etc. Alternate viewing options like this will increase revenue streams and attract new fans with improved accessibility.

Also, the increased engagement between fans and their sports icons will boost consumer sentiment towards the industry. A happy consumer is a loyal consumer and in business, consumer loyalty equals long term profitability.

The global sports industry is currently valued at US $ 512.14 billion, and is comprised of multiple facets such as sporting equipment and apparel, betting, viewership and even feeding to industries like fashion through Adidas, Puma, etc. The introduction of VR live streaming technology and the consequent growth in a global fan base will result in the advancement of all the listed facets.

If the NBA-Meta partnership becomes a success, it will only be a matter of time for other content streaming players to jump into the space. This will promote competition in the VR industry and as always, competition encourages further innovations. Who knows what kind of technological advancements will be built out of this process.

Thus, not only will it promote growth of the industry as a whole, growth in one part of it will also feed into the others.

Furthermore, VR technology is not limited to live streaming alone. There is a list of other use cases even in the sports industry itself. For instance, VR technology can be used to train athletes by simulating real-life experiences without risk of injury. This is especially useful in high-risk sports such as racing. VR replays and highlights can help referees to make better decisions and thus, conduct fairer games. VR can even lead to the creation of entirely new sports! (e.g., Hado)

Now, all of what is mentioned above is only one of the few industries where VR technology can be utilized. The benefits and applications of AR/VR technology are impossible to list down exhaustively, and with increasing innovations, the possibilities are endless! To put this into perspective, here are a few general use cases of VR technology:

· VR can be used in healthcare to train doctors and nurses and treat mental illnesses such as ADHD and PTSD.

· VR can be used in education to promote a more experiential approach to learning, which will boost the quality of education.

· The gaming industry has seen a rapid adoption of VR technology for a more immersive experience.

· Communication can be made easier with advancements in this technology. Online meetings can be made much more interactive and engaging. This can bring back the quality of conversations that people feel has been missing since the emergence of online video calls.

· Industries like tourism, architecture, manufacturing, etc., stand to benefit from the use of VR technology.

So, what now?

The potential of this technology is immense and the applications numerous. Businesses and consumers across the globe stand to benefit from providing and using AR and VR technology.

However, in a world where summers and winters take turns altering our lives, there is always a yin for every yang. Likewise, there is always a negative side to every innovation leading to potential abuse.

To think of an extreme case, AR/VR can be used to train pilots much cheaper and faster. This would have many positives in countries like India where pilot shortage is becoming a problem for airlines. At the same time, terrorist groups can use this technology to train people far more nefarious purposes.

Talking about something more abstract but equally (or maybe even more) important to us, AR/VR creates extra avenues of interaction among people across the globe. However, this can also lead to the degradation of the quality of these interactions. Take for example, the quality of conversations before and after instant messaging became so popular, or the easy availability of both insightful and deceiving information at our fingertips.

Like all other powerful and impactful innovations humankind has come up with, AR/VR technology has a wide range of uses, both good and bad. Innovations and technology are like knowledge, they are tools to be used impactfully. But how it is used depends on the user.

Now on our way back from the mall’s arcade, I wondered how different the world would be when the little kid grows up. Perhaps the world may have split into multiple realities, and perhaps it will stay the same.

Then we got our freshly fitted trousers and went back to our own little reality.