What is next for the moviegoing experience in the age of VR, spatial computing and streaming?
Examining the intersection of VR and traditional cinema in the evolving entertainment landscape.
In the evolving narrative of entertainment, the spotlight often falls on the competition between streaming services and cinemas. This rivalry is further intensified by other distractions such as social media and gaming, with sleep also emerging as a notable competitor. However, a less-discussed yet equally significant factor is the growing trend in spatial design, particularly in the realm of virtual reality. This trend is notable for its potential to embed cinematic experiences, akin to movie screening rooms, within virtual spaces. With the anticipated release of the Apple Vision Pro, this trend could redefine the landscape of movie-going experiences. It suggests that the real competition for cinemas may soon extend beyond streaming services to the digital realm of VR. In this space, cinematic activities can be emulated in a more personal setting, free from the distractions of popcorn sounds and whispering crowds1.
The concept of cinema-going as a 'zen' experience highlights this shift. The immersive nature of movie theaters creates a connection that feels almost meditative to some degree, raising the question of why cinemas still hold appeal in the age of large-screen TVs and personal projection technology. Despite these advancements, the allure of the movie-going experience persists, suggesting a deeper engagement than what home viewing options offer. While one can get sucked into the world of Tyler Durden, Suzy Bannion, or Iron Man on the small screen, there is nothing like having a first-row seat in front of a large, immersive display. The emulation of the fictional narrative feels very real in front of a display that is also free of all the distractions.
However, the long-anticipated VR revolution, promising a new frontier in viewing experiences, has yet to become a mainstream phenomenon. The consumer is constantly being lured by the promise of mass adoption of VR experiences and still, despite cardboard headsets, gaming use cases (and with Beat Saber being sold as VR’s killer app), and industry-applied solutions, it's challenging for the technology to break the niche boundaries. Within these decade-long promises, cinemas continue to be portals to immersive adventures, but with the advent of more sophisticated cyberworld solutions like Apple Vision Pro, the scenario might change2. These advancements in VR technology could offer a more compelling cinematic experience within the digital space (and most importantly, less dizziness, headaches, and muscle fatigue, which is a huge case that some researchers point to, potentially shifting the competitive focus away from traditional streaming services and adding to the pile of challenges the movie industry faces.
The traditional cinema experience, however, is not "just" about the film; it includes the entire cinematic ritual. This involves the journey, the unique curation of cinemas like Kino Rotterdam, or Lab111, and the communal aspect of movie-going and after-movie in-person debates within movie clubs3. This suggests that while VR might attract those seeking convenience or a more budget-friendly option4, the traditional cinema experience will likely remain invaluable for those who cherish the ritual and the ambiance of theaters. It opens the gates for more curated5 + experiences like retrospectives, discussion clubs, a wholesome event such as a night out for dinner and drinks with the cinemas' restaurant - a concept that Kino Rotterdam executes extremely well, even incorporating screening times to the Dutch tradition of late dinner-eating mixed with social time with friends (past 18:00 - 18:30) and providing many screenings past 21:30. Additionally, the narrative of the cinema is not a multitasking one, even with the debates of the controversies of using a smartphone in the theatre lasting for ages, it's harder to follow a movie in the theatre while doom-scrolling, rather than having another app one or two clicks away while being within the spatial environment of the digital cinema, or with the mobile phone in ones’ hand in front of a TV.
While we might lose our Marvel and blockbuster multiplexes in the long run as the pandemic has snatched away some viewers that still have not gone back to the cinemas because of streaming services' monetary and experience convenience6, we may see a rise of niche arthouse and high-end full experience7.
For data above: We can observe that buying 2 (or in some cases even 3) streaming subscriptions can often equal purchasing one movie ticket.
VR may appeal to those less attached to the cinematic ritual, offering a more economical and personal alternative, especially within current societal trends. This shift could lead to a decline in large multiplexes but could prove beneficial for smaller, more curated cinemas and cultural venues, particularly those supported by organizations and governments. The Dutch Cineville card is a great example of a system that benefits the avid moviegoer - for 22.50 Euro, one has unlimited access to 55 cinemas across the Netherlands.
Such a shift indicates a potential for greater diversification in the cinema industry, catering to a more niche audience that values the unique experiences offered by arthouse and curated cinemas. It might serve a need for a 'third place' (a term coined by sociologist Ray Oldenburg, referring to places where people spend time between home ('first' place) and work ('second' place)), where one can devour content but also engage in other offline activities around it (e.g., discussion clubs, film quizzes, special screenings). In contrast, streaming, home entertainment, and digital movie theaters will be less of a strain on customers' budgets, which in the current economy is a significant factor.
In conclusion, as we move forward, the landscape of entertainment is poised for a significant transformation, with VR and spatial computing playing pivotal roles. This evolution might not spell the end for traditional cinemas but could lead to a more varied and richly textured entertainment world - especially with arthouse and well-curated experiences that cater to the avid moviegoer's needs. Customer behavior will be influenced by convenience and economic factors, with an addition of the time-saving component, such as the time and effort one has to devote to get to the cinematic theater. As we have seen with diversification in industries such as gaming, with new forms of consumption (e.g., game passes) and ways of interactions arising (e.g., VR, mobile), a possible prominent change arises within the movie industry to provide a more diverse experience for the fans.
The future of cinema is truly diverse.
Which, of course, can be emulated to some degree to help a certain type of moviegoer with the experience.
Especially looking at the potential partnerships within the sports and entertainment space, and the productions from Apple Original Films, it's not hard to imagine the Napoleons' successor to be released on the Apple Vision Pro.
Solutions like Teleparty or Netflix Together have incorporated the group watch feature into streaming services.
While buying a VR set might not seem like a budget-friendly purchase (with the prices currently varying from a couple of hundred to tens of thousands dollars), it may be seen as an all-in-one device, where movie-watching is one of the features. The case of, PlayStation 2 and its included DVD player, (which helped to push console sales to a record of over 155 million units, a record still not broken) may seem like a logical analogy.
Curated experiences leave the viewer with a relatively smaller variety of titles to choose from, while most streamings (like Prime Video or Netflix) throw the user into an endless pit of content with little guidance. With the problem being on the rise, recommendation startups like Me Gusta are creating a solution for this.
Post-pandemic attendance: EU and UK cinema attendance is up by 63% in 2022, but still short of the pre-pandemic average.
Another similarity video game market and movie-going. With the decline of the mass market for physical games, niche companies releasing special edition titles or bringing old games to life and releasing them in a physical package are poping up (examples include Limited Run Games, Super Rare Games).