Monetization In VR

1. Monetization in VR
February 2017
Sivan Iram
Sivan.iram@gmail.com
@sivaniram

2. Agenda
1. Background + Context – 5 mins
2. State Of VR – 10 mins
3. Exis@ng Business Models – 10 mins
4. Forecast – 5 mins
5. Ques@ons – 15 mins

3. Sivan Iram
• Military Officer (Israeli Defense Force)
• Software Engineer
• Started 2 companies
• Harvard MBA
• (Past) General Manager at UploadVR
• (Currently) Working on new AR Startup
@sivaniram
Who the heck are you?

4. Background + Context
Premium VR Content Studio Media, CoWorking, Educa@on

5. Music Social Live Sports Games Journalism Real Estate
Entertainment Training Retail Health Education Productivity
Applications

6. VR Ecosystem

7. Technology Adoption Model
Innovators
Early
Adopters
Early
Majority
Late
Majority
Laggers
2.5% 13.5% 34% 34% 16%
”The Chasm”

8. 0
5
10
15
20
25
30
35
40
45
50
Electricity Telephone Radio TV PC Mobile
Phones
Internet Smart Phones
Time To 25% Adoption (US)
1900 1950 2000
Technology Adoption Rate

9. Investments In VR/AR – 2016
$2.3B
invested
Applica@ons
Advrg/Mktg
Tech Distribu@on
Sourcs: DigiCapital

10. VR Entertainment Distribution
• Free for users
• Maximum exposure
• Ad-rev model
• Requires user volume
User Generated Content (UGC)Marketing
Content Free For Consumers
• Paid by consumers
• VOD/Subscription
Film, Music, Sport
Premium Content (Paid)

11. VR Content Monetization Strategies
Exis@ng Models – Hardware:
Channels
Brick & Mortar Online
HMD Cameras Input Devices Microphones
Buy / Rent

12. VR Content Monetization Strategies
Exis@ng Models – So]ware:
Cloud Services Plugins Tools
SaaS / Licensing
Applica@ons
Entertainment
Pay To Play / Freemium / In App Purchases
Games

13. VR Content Monetization Strategies
Exis@ng Models – Distribu@on:
Pla_orms
Subscrip@on
Pay To Play (Fee)
Loca@on Based Pla_orm

14. VR Content Monetization Strategies
Exis@ng Models – Produc@on
Commission
VR Studios
Revenue Share
Entertainment

15. VR Content Monetization Strategies
E-Commerce (web)
Future Models & Use Cases
Pay Per View (TV/Streaming web)
Distribu@on Rights (Film)
Ads (Internet)
Product Placement (Social)

16. Unlocking Human Behavior

17. Forecast
Short Term
• 2017 will be hard for VR
• Most companies will disappear
• VR gaming will keep growing
Long Term
• AR will be MUCH bigger
• Apple is best posi@oned to take over the market

18. Questions?
1. Reach out: sivan.iram@gmail.com
2. Follow / Tweet: @sivaniram
Thank You!