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Introduction

VR has failed to live up to early expectations, but the market for VR content is continuing to expand and is set to reach $2.7bn in 2018.

Highlights

  • The VR market is experiencing a marked slowdown. VR content revenue growth has dropped precipitously, from 235% in 2017 to 53% this year as the initial hype wears off and as falling hardware sales dent the content market.
  • The cooling of the VR market does not mean it is not dead or just a fad. VR content revenue is still forecast to almost triple over the next five years.
  • Gaming is the dominant VR revenue stream, but video is catching up. Video games have been the main revenue driver in the early years of the VR market, but video will play a more important role as it matures.

Features and Benefits

  • Quantifies the size and composition of the VR content market.
  • Forecasts growth of VR content revenue through 2023.
  • Identifies the inhibitors that have caused VR revenue to fall short of expectations.
  • Explains which advances are needed for a true breakthrough in VR.

Key questions answered

  • Why is the VR market slowing down?
  • Can the VR market survive or even thrive despite its current difficulties?
  • How can VR succeed as a mainstream entertainment medium?
  • What will the key revenue streams be in the future VR content market?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations

Market status

  • VR market growing more slowly than expected

Market dynamics

  • Video games remain the primary revenue driver
  • Video is gaining in importance

Market outlook

  • Improvements in VR tech cannot come quickly enough
  • VR will not replace conventional media

Appendix

  • Methodology
  • Further reading
  • Author