Many companies are looking with interest the emerging Augmented Reality market and a smaller number is on the front line to win a leading place in the industry. Netflix is in no hurry to do so, as its CEO Reed Hastings and Ted Sarandos, Chief Content Officer, who have released in recent hours to the site Venture Beat new statements on the subject. Hastings does not underestimate the positive effects of the commercialization of the first Virtual Reality viewers on specific market segments, but the streaming video content is not among them. The CEO says about it: I think (Augmented Reality) will have a big impact in the video game market.
The type of content is another key point: to produce video content that will enhance the virtual reality viewers is an essential step to justify their purchase, just like video games and other applications optimized for virtual reality become essential to encourage the spreading. At the moment the app Netflix can be used with Google Cardboard viewers and Oculus Rift, but it is simply a direct transposition of the 2D version of the app which does not offer any added value. Produce specific content for VR viewers it is the solution, but Ted Sarandos explains why, at the time, Netflix is not willing to adopt it:
The problem with virtual reality is that there are not enough users on the platform to support the investment in this type of content
The base of users who possesses and uses a VR viewer is significantly smaller than that of the approximately 80 million users, and Netflix is a major reason that prevents the company to invest to produce VR contents. You enter this way into a vicious circle whereby in the absence of content potential buyers refrain from buying the hardware and in the absence of an installed base of potential service providers will refrain from achieving them. Evidently, the driving force of the industry lies elsewhere, in the games industry, to remain in consumer.
There is also another reason that does not make priority investments in VR for Netflix is not only important thing to provide, but also in how the end user benefits from the content. Eloquent about the Hastings statement that says in the following terms the immersive experience assured by viewers VR - undoubtedly experience suitable for a gaming session, perhaps a little 'less for an evening on the couch:
You're exhausted after 20 minutes. We are more focused in offering a relaxing experience
Equally clear is the image outlined by Sarandos adding:
I can not imagine wearing a VR viewer for two hours while they are sitting on the couch with my wife and disappear
The position expressed by executives from Netflix on the ability of VR viewers to produce benefits to the streaming video industry was reiterated by the company in other circumstances. "I think the Virtual Reality will have no direct effect on us over the next two years," stated the CEO of Netflix at the meeting with investors held close to the first quarter of 2016. Nevertheless, Netflix will continue to monitor the specific waiting market segment that reaches a more mature stage.
The doubts and skepticism expressed by Netflix against the Virtual Reality are physiological as it is a new market segment. To summarize the current trend and start assessing future prospects, we note the editorial Virtual Reality, including gaming and business space to technology published today.
The type of content is another key point: to produce video content that will enhance the virtual reality viewers is an essential step to justify their purchase, just like video games and other applications optimized for virtual reality become essential to encourage the spreading. At the moment the app Netflix can be used with Google Cardboard viewers and Oculus Rift, but it is simply a direct transposition of the 2D version of the app which does not offer any added value. Produce specific content for VR viewers it is the solution, but Ted Sarandos explains why, at the time, Netflix is not willing to adopt it:
The problem with virtual reality is that there are not enough users on the platform to support the investment in this type of content
The base of users who possesses and uses a VR viewer is significantly smaller than that of the approximately 80 million users, and Netflix is a major reason that prevents the company to invest to produce VR contents. You enter this way into a vicious circle whereby in the absence of content potential buyers refrain from buying the hardware and in the absence of an installed base of potential service providers will refrain from achieving them. Evidently, the driving force of the industry lies elsewhere, in the games industry, to remain in consumer.
There is also another reason that does not make priority investments in VR for Netflix is not only important thing to provide, but also in how the end user benefits from the content. Eloquent about the Hastings statement that says in the following terms the immersive experience assured by viewers VR - undoubtedly experience suitable for a gaming session, perhaps a little 'less for an evening on the couch:
You're exhausted after 20 minutes. We are more focused in offering a relaxing experience
Equally clear is the image outlined by Sarandos adding:
I can not imagine wearing a VR viewer for two hours while they are sitting on the couch with my wife and disappear
The position expressed by executives from Netflix on the ability of VR viewers to produce benefits to the streaming video industry was reiterated by the company in other circumstances. "I think the Virtual Reality will have no direct effect on us over the next two years," stated the CEO of Netflix at the meeting with investors held close to the first quarter of 2016. Nevertheless, Netflix will continue to monitor the specific waiting market segment that reaches a more mature stage.
The doubts and skepticism expressed by Netflix against the Virtual Reality are physiological as it is a new market segment. To summarize the current trend and start assessing future prospects, we note the editorial Virtual Reality, including gaming and business space to technology published today.
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