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Will the Video Industry Be the Key to XR Success?

José Somolinos

Solutions Strategist & XR Lead

October 9, 2024

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If you have been watching out for emerging trends in the OTT world, one thing is becoming increasingly clear: immersive technologies like XR are no longer just buzzwords. They are radically shaping the future of how audiences engage with content. While the adoption of extended reality (XR) technologies may still be in its early stages, video content companies that fail to adapt now could soon find themselves falling behind in both innovation and revenue opportunities.

To learn more about this critical transition, we had an interview with José Somolinos, Accedo’s Solutions Strategist & XR Lead to extract his invaluable insights into how XR is disrupting traditional content production and consumption. He also discusses the growing appetite for immersive experiences, the importance of early content investment, and how sports organizations are leading the charge in creating next-gen fan engagement through XR.

What’s the current consumer appetite for new technologies like XR? Is there a market yet for immersive applications?

The immersive applications market is just beginning to move towards mainstream adoption. While there’s been some criticism of the Apple Vision Pro’s price and weight, this is typical with new technologies. Rumor has it that Apple is already working on a slimmer, more affordable headset expected to hit the market next year. However, there’s no need to wait until then—quite the opposite!

The Apple Vision Pro is already available in major markets like the US, UK, Germany, France, and Australia. While its high price may limit its mass-market appeal, those who own one are often tech enthusiasts who can help refine your experiences. At the same time, Meta Quest is expanding its reach with a different approach, offering a cheaper, lighter device while still maintaining a high-quality experience. The recently released Meta Quest 3S, starts at $300, could significantly broaden the audience to those more price-sensitive. There is XR for all budgets. 

However, the success of these headsets doesn’t solely depend on the hardware. If content isn’t available, these devices will end up gathering dust in drawers. Content creators must play their role, investing now in adapting their content for immersive platforms, or they risk losing out on future revenue.

How can we approach the technical complexities of XR, such as immersive video production, especially in a fragmented streaming environment?

Immersive production has been around for a few years, but there hasn’t been much content or widespread use. However, Apple is making a strong push in immersive video by leading by example. They’ve created a series of short immersive videos, including documentaries, lifestyle content, music, and sports, to show both users and content producers the possibilities of this new format.

Apple’s strategy is setting the stage for the industry:

  • They’ve formalized 180 degrees as the preferred aspect ratio over 360 videos, as it keeps users focused on the action while optimizing pixel placement.
  • They’ve launched the MV-HEVC codec, improving video stream efficiency while maintaining high-quality and spatial audio. Meta Quest quickly followed suit, adopting this codec for its headsets.
  • Apple has partnered with companies like Black Magic, which has released an 8k-per-eye camera, and is making DaVinci Resolve and Final Cut Pro compatible with this new video pipeline.

By jumping abroad and adopting these new tools and techniques, content creators and producers can experiment with exciting new formats and enhance their storytelling. This will help them stay competitive as immersive media continues to grow and evolve.

How are companies and technology vendors adapting to this new way of producing content?

Producing immersive video requires developing new skills. The underlying technology is the same, a video camera broadcasting video, but there are significant changes throughout the production pipeline. For instance, VR cameras need to be placed closer to capture the immersive aspect. Additionally, the data volume for each camera is immense—up to 16k at 90fps—requiring increased processing and distribution capabilities to handle it efficiently. These are just a few challenges companies must overcome to produce high-quality VR content.

To address these, industry leaders are forming strategic alliances aimed at accelerating the adoption of XR technologies. Accedo, for example, is working closely with key partners to push the boundaries of immersive video, especially in sports. Through initiatives like the XR Sports Alliance, these collaborations are developing frameworks to test new technologies in controlled environments, speeding up the learning process and overcoming production hurdles. By bringing together experts and innovators, these efforts will tackle critical issues, such as, for example, reducing data loads for holographic production. Ultimately, strong partnerships will be essential for unlocking the full potential of XR in content creation.

Speaking of sports, what do you think are the biggest opportunities for sports organizations to capitalize on XR technologies?

Video is at the core of any app in this industry, but XR brings the potential to elevate fan engagement, especially in sports. On immersive platforms, fans are more likely to engage with data like stats, additional video feeds, and highlight reviews. This is because immersive platforms turn viewing into an active, participatory experience rather than a passive one, like watching TV on a couch.

At IBC 2024, we demoed our football application with AWS, showcasing the possibilities beyond traditional video. We added multiple camera angles to follow the action, automated highlights on a second screen, and integrated stats, both traditional and spatialized. For instance, instead of overlaying stats on a 2D screen, they are now displayed in 3D, over a virtual pitch, in front of the user, and accessible at all times. This is what we can do today with existing content, but with headsets becoming more available, there’s even more room for experimentation.

How do you see personalized advertising evolving within immersive streaming environments? Can brands create more meaningful viewer interactions with spatial computing?

Certainly! Immersive experience offers a more interactive and engaging way to redefine advertisements. For example, we can make ads in an environment where users could interact with 3D product models or even play mini-games with a brand. 

However, it’s crucial that we, as an industry, create a sustainable model that works for both users and advertisers. Take traditional TV, for example—when an ad plays, viewers can mute the sound or look away. But in fully immersive VR environments, intrusive ads could quickly become annoying and even dystopian. I strongly believe in making ads less intrusive and more engaging, attracting users to interact with the brand instead of forcing ads in their faces. If done responsibly, immersive platforms could change how people view ads—from a nuisance to a positive experience.

What role do strategic partnerships play in accelerating the adoption of next-gen features like XR in streaming?

The XR video industry can leverage traditional video infrastructure, such as authentication and content hosting, but it also requires new partnerships with specialists in immersive platforms. Who handles spatial video transcoding? Who creates virtual environments or mini-games? How are companies capturing spatial analytics to understand user interactions with 3D content?

Accedo acts as the bridge between these two worlds. We understand the needs of the traditional video industry while keeping up with the cutting-edge features emerging in XR. This is why we’ve developed a vetted network of partners through our Xtend Partner Hub. Many of these companies are startups, highly skilled in their niches, but integrating all the pieces requires an expert. Our managed service for immersive video applications simplifies the process for content owners while maximizing learning and revenue.

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