How the NBA is Revolutionizing Fan Engagement with the Metaverse
Although Virtual Reality is a relatively new product, one industry is very excited for the potential benefits it could offer the community. The NBA believes the technology can offer fans a unique experience that would allow them to interact with the game, in ways that otherwise wouldn’t be possible.
#### What is it?
The NBA’s attempt to enter Virtual Reality (VR) could be a major breakthrough in the way fans engage with sports. The league wants to offer fans new ways to experience the sport, offering immersive experiences that go beyond arenas. This approach has the potential to attract new audiences, particularly Gen Z and Gen Alpha.
#### Fan Benefits
- Affordability: Courtside seats often cost over $1,000 a seat; at Knicks games they are often exclusive to celebrities. VR makes this experience accessible to more fans, allowing them to see the game as if they are sitting courtside.
- Accessibility for People with Disabilities: For fans with disabilities, attending live games can present numerous challenges. VR offers an inclusive solution, allowing them to see the game up close, but from the comfort of their own couch.
- Geographical Reach: VR broadcasts allow NBA fans to watch games from wherever they want. Even for fans who live over 1,000 miles from their favorite teams, this option may offer a good solution.
#### Impact on the NBA
While VR broadcasts have not increased viewership numbers much, they have provided a small boost in fan engagement. This is evidenced by the proliferation of partnerships, experiments, and proof-of-concepts to date. For the NBA, this means more interactive and engaged fans, which is a positive sign for the potential impact of VR.
“We’re working very closely with Apple. Just in a general way, I’ve been having lots of conversations with media companies and tech companies. It seems like the interest in premium live sports remains incredibly strong.” -Adam Silver (NBA Commsioner)
#### Challenges and Limitations
Although the potential benefits of VR on the NBA are significant, there are currently a few limitations that are blocking its ability for an immediate massive impact.
- Consumer Appetite and Technological Adoption: VR headsets are viewed more as a novelty than a significant product. People think it is a cool product to try, but don’t have much interest in paying over $400 for one.
- Graphics Quality: Devices like Meta Quest offer decent graphics, but they don’t match the quality of TVs or computer screens. People often care more about watching games in HD or 4k than in 180 degrees.
- Early Stage Technology: VR is still a relatively new technology that needs time to go through significant trial and error. There is a tremendous amount of potential, but it will not come overnight.
#### Invest in it? Maybe.
The NBA’s use of Xstadium’s VR technology to broadcast games is a great example of how virtual reality can enhance fan engagement. The limitations in technology and consumer readiness suggest that large-scale investment might be premature. However, as the technology matures and becomes more accessible, VR broadcasting could become a game-changer in the sports industry.
For now, a conservative approach may be ideal for investing in this technology. The excitement that the NBA and fans generate around this product should be a key indicator that there is a place in the future of sports broadcasting for this product, but it also relies on Meta and Apple to continue to invest in this product (which seems especially likely for Apple). Although I don’t personally use VR to watch sports, I am super excited about the possibilities that exist.
