VR Magazine writer Paul Trowe claims that “[he’s] never experienced anything like this in the 30+ years I\u2019ve been playing and making games.” [2]<\/p>\n
Role of Visuals in Live Music:<\/span><\/p>\n Visuals play a key role in live music events: Electric Daisy Carnival spent $3M in 2016 just on its main stage display [3] (there were 10 stages total) and Ultra Miami allocates similar budgets for visual production.\u00a0Some music festival attendees enjoy the visuals even more than the music, so there is huge potential for TheWaveVR to gain adoption and capture share of wallet with its solution that pushes boundaries of visuals.<\/p>\n <\/p>\n TheWaveVR Value Creation:<\/strong><\/p>\n Music creators have full control over the experience they create. \u201c[They can] fully customize how their audience experiences\u00a0the\u00a0music \u2013 whether that\u2019s by transforming\u00a0the\u00a0venue from a realistic nightclub to outer space or putting on\u00a0the\u00a0most unimaginable light show ever.\u201d [4]<\/p>\n The platform is fully open, allowing any music artist to create “Wave Shows” and any user to attend such performances. Musicians must use HTC Vive and its controllers to DJ, but users can use any HMD including the $15 Google Cardboard [5], which allows easy trialbility of Wave Shows and widest access.<\/p>\n As the platform is still nascent, live “Wave Shows” only occur once a week. Attendees can interact with performers and\u00a0other fans, dance, paint, and experience these shows in many other ways than feasible in real life. For example, fans can communicate with the onstage artist via gestures and motions, and musicians can react accordingly. Social is a core value proposition of the platform, counter to many other VR use cases.<\/p>\n Value creation for musicians \u2013 performers can reach a broader audience and “scale” themselves via TheWaveVR’s virtual venue. Artists can import tracks, create visuals, and share futuristic shows both live and as re-runs. Whereas musicians on tour can only feasibly perform at 3-4 shows a week, they can host multiple digital shows during a single night on TheWaveVR. Wave Shows also offer opportunities for more intimate interactions with fans (1:1 conversations, etc. not possible \/ safe in real life), increasing loyalty and engagement of fans.<\/p>\n Value creation for users \u2013 the platform drastically lowers barriers to attend concerts. Those who want the social experience of live music but can’t for any reason (don’t have time, don’t have money to travel and pay high entry fees, etc.) can now get a similar experience, virtually.<\/p>\n TheWaveVR Value Capture:<\/strong><\/p>\n The company stated that one of its goals is to help create new revenue streams for music industry. However, since the venture is still in beta and focusing\u00a0on growing users on both sides, it hasn’t started monetizing. The predicted market size for VR Live Events is $4.1Bn in 2025. Even if we assume live concerts is only 10%, it’s still a lucrative $400M market [6].<\/p>\n Below are a few ideas\u00a0on future value capture.<\/p>\n Recommendations to Grow the Business:<\/strong><\/p>\n User growth:<\/span> Monetization:<\/span><\/p>\n In Professor Zhu’s “Making Virtual Reality Real” note, an industry observer notes that the product that “takes advantage of everything you can do in VR, the social presence, the ability to talk to people, [\u2026] that will be a killer app.” TheWaveVR checks all 3 boxes and could very well be that killer app accelerating consumer VR adoption.<\/p>\n <\/p>\n [1, 4] https:\/\/techcrunch.com\/2016\/08\/05\/thewavevr-raises-2-5m-from-kpcb-and-others-to-bring-the-concert-experience-into-vr\/<\/p>\n [2] https:\/\/vrtodaymagazine.com\/thewavevr\/<\/p>\n [3]\u00a0https:\/\/www.forbes.com\/sites\/ryanmac\/2016\/07\/06\/electric-daisy-carnivals-main-stage-rotella-edc-insomniac\/#52d6b78352d6 [5] https:\/\/thump.vice.com\/en_us\/article\/wave-virtual-reality-future<\/p>\n [6] http:\/\/www.statista.com\/chart\/4602\/virtual-and-augmented-reality-software-revenue\/<\/p>\n [7]<\/p>\n![\"\"](\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/04\/Capture2.png\")
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\nDirect network effects exist in such product because of its social elements, so it is important to quickly attract users. But how to attract users on both sides? Pure platforms always face the chicken and egg problem. We learned in class that the side with more potential to capture value is easier to attract first \u2013 musicians in this case. To attract musicians:<\/p>\n\n
\nThe company should partner with top ranked DJs (Martin Garrix, Tiesto) [9] and technologically-forward DJs (Deadmau5, Skrillex). Initially, TheWaveVR may have to pay the DJs to use the platform since there are few users and hence not much value for top artists. If TheWaveVR is able to secure a few big-name DJ partnerships, fans will quickly flock to platform as DJs advertise their Wave Shows on social media and other marketing outlets. To fight multi-homing, TheWaveVR can offer an exclusive repository\u00a0of top DJs’ Wave shows only available for re-run on its own platform.<\/li>\n<\/ol>\n\n
\nA potential risk is cannibalizing\u00a0existing festival ticket sales. However, these festivals are often sold out, so demand exceeds supply. TheWaveVR could simply capture value from excess demand. Further, these events have been\u00a0livestreamed in 2D for years with minimal revenue impact. Why not monetize those who don’t attend because of cost or ticket supply issues via a VR interactive experience?<\/li>\n
\nTheWaveVR can even segment pricing, charging higher fees for meet-and-greet \/ more interactions with the DJ, etc.<\/li>\n
\n“Biggest of the festival’s eight stages, the 440 feet wide, 700-ton design carried a $3 million price tag that was highlighted by a 90 foot, LED encrusted tree. The stage also featured custom fountains, 33 flame torches, and 1,400 lighting fixtures.”<\/p>\n
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