How Is VR Changing the Entertainment and Film Industry?

Augmented reality (AR) and virtual reality (VR) already support a rich gamut of experiences across multiple sectors, but it’s probably most exciting to see how AR and VR change entertainment and media. This post is dedicated to the growing role of VR in entertainment.

An example of Onix’s work: the Anija Mõis museum uses VR for entertainment and education

 

If you are considering VR for entertainment industry endeavors, you’re in the right place! Here you can find answers to questions like

 

• What is the current dynamic of virtual reality and entertainment industries?
• How is VR used in entertainment?
• What are the most promising sectors for investment?

 

You will also see real-life examples of virtual reality in movies, gaming, socialization, and other leisure activities, including Onix’s projects. If you have any questions, need assistance with your VR project, or want to estimate its possible cost, please don’t hesitate to contact us!

First, let us review the development of virtual reality in entertainment industry contexts.

 

The Synergy of VR and Entertainment

This combination of cutting-edge technologies and experiences targeting human senses and emotions has extraordinary commercial potential. Moreover, these industries stimulate each other’s growth, attracting new consumers, creators, and investments.

Statista’s forecast of the global VR market size

 

The global VR software market revenue is expected to reach 4.3 billion USD in 2024 (23% of it in the US) and exhibit a CAGR of 7.46% til 2029, when the user base should hit 207 million consumers. 

 

One of the best virtual reality applications in entertainment – VR gaming – will likely remain the largest segment in the VR software B2C market: it is projected to generate 5 billion USD out of 5.92 billion in 2028.

Games, such as InnerVR that Onix helped to build, are a major driver of the VR market growth

 

The adoption of VR in entertainment largely depends on the development of head-mounted displays and accessories. Vendors like Meta are pushing VR into the mainstream; their untethered headset Meta Quest 3 is the current bestseller. VR headsets and controllers are being improved year after year while becoming more affordable for broader audiences. 

 

The VR hardware market is predicted to have a revenue of 11.4 billion USD in 2024. China, which has an estimated market volume of 2.9 billion USD, dominates this segment. The global VR hardware market volume is forecast to grow at a CAGR of 9.35% from 2024 to 2029. 

 

Again, VR gaming is a significant driver. The global VR in gaming market size is expected to grow at a CAGR of 30.4%, from USD 22.63 billion USD in 2024 to 189.17 billion by 2032. 

Products like Onix’s VR goalkeeper game may appeal to adults and children alike: gamers, sports fans, people who want to work out at home, and even professional athletes 

 

People spend more time and money not only on video games but also on social networks, cinema, music concerts, sports games, amusement parks, etc.

 

For example, the projected growth of the movies and entertainment market at a CAGR of 8.1% in 2024-2030 is partly driven by the propensity to spend on leisure and entertainment, increasing disposable incomes, and the growing demand for 3D movies.

 

The global metaverse in entertainment market share is predicted to grow at a similar CAGR of 8.2% from 2023 to 2028. Along with VR gaming, the significant increase in demand for virtual concerts and other events, the number of people attending them, and consumer spending will further push the industry forward.

Onix’s Night Club VR Streaming tested streaming capabilities within a VR environment

 

Read also: Metaverse Environments: Crafting Immersive Spatial Realms

 

The use of AR and VR in various entertainment and media forms is transitioning from experimental to commercial. Technology evolves rapidly, and innovation continues, producing more lifelike VR experiences that will engage more consumers and boost the commercial success of such applications.

 

 

Now, let’s take a look at some actual implementations of virtual reality in entertainment businesses.

 

How Can Virtual Reality Be Used in Entertainment?

In this post, we will review several use cases of VR in entertainment sectors like

 

• Games
• Cinema
• Theaters
• Music
• Amusement parks
• Museums and galleries
• Graphic design

 

Gaming – the ultimate virtual reality entertainment 

 

Goalkeeper Legend – a fresh example of Onix’s VR game development

 

Read also: 5 Best Virtual Reality Headsets for Game Development

 

For those who don’t own consoles, headgear, and controllers, a growing number of arcades and malls offer immersive experiences at reasonable fees.

 

Increasingly realistic virtual environments, haptic feedback, improving chairs, gloves, full-body suits, and other equipment and accessories can create a complete illusion of driving a racing car, fighting zombies, or playing in a casino.

 

The addition of air currents, steam, heat, smells, and other sensations programmed for corresponding moments in a virtual reality experience can take it to a new level.

The first IMAX VR centers offered some revolutionary gaming VR experiences. John Wick Chronicles VR game using the proprietary StarVR system and a controller constructed out of a retrofitted gun was reportedly the most impressive one. After several minutes, a gamer would feel the fatigue from ducking behind cover and wielding a gun as the action got more intense.

 

Read also: How to Implement VR and AR in Fitness in 2025

 

The showroom of Owatch, a Chinese VR equipment manufacturer, gives an idea of what a VR park/arcade may look like. A one-stop VR center can provide a full range of simulator games and experiences: 5D/7D and 9D cinema, VR racing, machine gun, and flight simulators, and more.

 

 

Gambling also treads into virtual reality. Many online casinos already include VR slots, and one can play blackjack and poker in virtual environments. Games that require live dealers are also gaining popularity, as people appreciate the opportunity to enjoy a casino experience from home, safely and without the risk of social stigma often associated with gambling.

 

Once internet speeds increase, improved VR headsets and accessories become more affordable, and the market more competitive, the industry can see a surge in VR casinos.

 

The market of VR games for kids is underdeveloped. A quality experience requires VR headsets, storytelling, and design adapted to children’s needs and tastes. As the competition in this niche is still low, a successful developer can become a unicorn.

Games like Onix’s Paintball VR offer an opportunity for VR in the entertainment industry for kids  

 

Read also: How to Make a VR Game

 

VR in Graphic Design

Virtual reality is a place where technology meets art and creativity. Professionals already use VR in the design industry, arts, engineering, etc. 

 

Onix also has experience in this area. Our VR Infinite Design Studio allows aspiring fashion designers to play around and perfect their designs in a virtual atelier using gestures and voice commands.

 

 

For others, it can be a creative outlet and a fun pastime. Tilt Brush is a good example. The app/game enables users to paint in 3D space.

 

Using their room as a canvas and a controller as a 3D brush, they can create life-sized virtual objects, step into their artwork and walk around it, fully immersing themselves in the creative process. The virtual palette ranges from ink to fire.

 

 

VR in Movies

VR cinema is basically filmmaking adapted to the VR medium. This novelty art form promises new and better ways of experiencing stories due to interactivity, non-linearity, and increased  empathetic power.

 

VR creates a greater sense of “presence” than traditional movie theaters or streaming services, allowing viewers to explore the movie’s settings, experience the protagonist’s journey, and even get involved in the action. Moreover, viewers will be more likely to revisit an experience because they can see and do something new every time they watch a VR movie. 

 

The technology is still in its infancy, but actual references to virtual reality in films like The Matrix or Don’t Worry Darling give an idea of future possibilities. Meanwhile, VR creates a potential niche opportunity for pioneer filmmakers and new production companies. 

 

Read also: How AR/VR Technologies Impact eLearning

 

VR movies include

 

1. live-action films
2. computer-generated (CG) films
3. animation films
4. a combination of live-action and CG/animation films

 

The first type appears to be prevalent now. VR videography studios like 360 Labs, East City Films, MindVR, or Onix’s client VR Gorilla produce such VR videos.

An example of Onix’s collaboration with VR Gorilla – a scenario-based VR training program for medical students

 

CG VR movies allow for easier incorporation of interactive and non-linear elements. The award-winning Baobab Studios and Penrose Studios are some of the leaders in interactive animation.

 

 

Cinematic VR requires new forms of movie storytelling and workflows. The adoption of VR in the film industry will largely depend on the quality of storytellers and producers it attracts.

 

The first VR movies are going to be quite costly to create, but the development can eventually lead to cheaper film production. For one, completely CG virtual environments reduce the cost and challenges of shooting in multiple locations and settings.

 

In the immediate future, “VR cinema” will likely be associated with 

 

1. theaters with VR headsets, possibly with rocking and swinging seats that replicate the motion in the movie, and other devices adding more dimensions to a traditional cinema experience;
2. virtual environments simulating a traditional movie theater where users can watch movies of their choice.

Multidimensional/XD (3D, 4D, 5D, 7D, 9D) cinemas present one of the most exciting application of VR in films and entertainment in general.

 

IMAX was also an early adopter of VR cinema, betting on:

 

1. state-of-the-art hardware and equipment to offer a cutting-edge experience that is not available to consumers at home
2. high-quality immersive and interactive content, such as virtual reality experiences created in partnership with Warner Brothers, including the blockbusters Justice League and Aquaman

 

The first permanent motion VR theater in the US opened in July 2022. Yosemite VR is located in Oakhurst, CA, just off the main road leading to an entrance to Yosemite National Park.

 

The flagship VR film, Yosemite Experience, included views of the park’s natural environment from perspectives unique even for veteran hikers and climbers. The multi-sensory experience was giving an understanding of the park’s rich history, size, and grandeur, enriching an actual trip.

 

 

Yosemite Experience was made possible by CityLights Production and the VR chair manufacturer Positron. The experience was digitally rendered and choreographed from thousands of images, combined with 360-degree turns, multiple scents, and moving air currents to fully immerse viewers in the captivating educational experience.

 

Read also: Training in Virtual Environments: 360° Video vs. Full VR

 

VR headset owners can enjoy an immersive home cinema experience alone and with friends. VR movie apps like Bigscreen, Plex VR, or a custom-themed movie distribution app developed by Onix make watching movies, TV series, and other video content truly engrossing.

 

 

Users can view and share their favorite content in beautiful spaces while actually sitting on their couch. The home movie theater experience is complete with a virtual cinema lobby, sitting next to other moviegoers, and even virtual popcorn, but without any distractions or interruptions.

 

This can be a successful business model. The developer can market this app to broad audiences, use it as a promotional tool for 2D movies, and generate revenue as the market expands. 

 

For film companies, it provides a new opportunity to distribute their movies to global audiences at a lower cost than at physical theaters, without any safety and health-related restrictions, etc., and access audiences who wouldn’t go to the movies otherwise.

 

Read also: VR Guide to Create Your VR Training Solution

 

VR in Theatres

Theatre performances where spectators can feel present and involved in the action are more entertaining and engaging. They attract public attention and drive new audiences to theatres.

 

VR’s technical capabilities allow for conveying their main features: narrative, immersion, and interactivity. So, forward-looking producers are now looking at the medium as a new means of promoting the art form and providing unique theatrical experiences.

 

This application of AR/VR in entertainment is in the experimentation stage yet. For example, in 2018, the faculty and students of the University of Iowa in computer science, theatre arts, dance, and art and art history realized a project integrating live performance with virtual reality.

 

The show titled Elevator #7 was played for one spectator, called a single-audience-member (SAM), at a time. On a physical theatre stage, they would find a desk, a chair, and a chandelier and meet an actor playing a concierge.

 

After the SAM put on a VR headset, a curtain at the back of the stage would rise, revealing a green screen, computers, and the technical crew. However, the SAM would see only the same table, chair, chandelier, and concierge, now digitally rendered, in the lobby of a 1900s hotel. 

 

The concierge would invite them to an elevator, after which a series of scenes and adventures followed. They would fall into the basement, try to fix the elevator, find a caged prisoner, and meet an electrician. At last, the elevator would bring them to a beautiful meadow on the roof.

 

The show was a mix of live and prerecorded action. For example, the concierge was the same actor performing on the same stage in real time. Green screen technology was used to project live videos of the actors into the SAM’s headset.

 

The actors looked into a camera in front of the green screen to look at the person. A monitor next to the camera showed what the SAM was seeing. Another monitor displayed different camera angles of the actor.

 

 

In 2020, Relative Motion studio collaborated with the Barn Theatre in Cirencester, UK, to reimagine Christopher Marlowe’s Edward II for modern audiences.

 

Edward II VR was a 8-minute scene of the historic LGBTQ+ drama unfolding around a SAM sitting at the center. The VR experience was available on YouTube and Facebook, bringing the Barn Theatre’s performance into the audience’s phones, tablets, and VR headsets.

 

 

Both companies got recognition for their innovative support of the creative process and audience experience and for producing work for the “virtual stage” during the lockdown.

 

Virtual Reality in the Music Industry

Competition drives musicians and producers to endless experimentation to stay up-to-date and relevant for the audience. The application of VR in music projects may help with both.

 

Björk, Coldplay, Eminem, Imagine Dragons, Maroon 5, Paul McCartney, U2, and other artists have presented various VR experiences. MelodyVR app offers a selection of live shows of hundreds of musicians for fans to stream on VR headsets or other devices.

 

 

The use of virtual reality in the media industry not only empowers fans to “attend” gigs remotely.  They may take the best seats or watch the concert from backstage, jump on stage with the band, and enjoy other viewpoints and interactions impossible in real life. The experiences can be available to people worldwide regardless of their income level, disability, or other barriers.

 

Major music events, such as Coachella, Lollapalooza, Sziget, or Tomorrowland, have also experimented with VR applications and 360-degree videos. VR experiences may help scale the festivals, increase their audience, and generate extra revenue through VR content sales.

 

Another promising direction of using virtual reality in the music industry is fully simulated concerts. VR allows for the attendance of unlimited numbers of concertgoers, creating stage effects impossible in real life, or even “bringing back to life” artists who passed away. 

 

 

Virtual concert-goers may pay through subscription or pay-per-view, generating revenue for the artist and the VR content platform. CG performances also provide a cost-efficient way for artists to reach audiences worldwide because they eliminate travel and transportation of the crew and equipment, venue rentals, stage effects, promoters, safety, and other costs.

 

For fans, it also means lower ticket prices, no need to travel and find accommodations, and no health and safety risks. Instead, they can enjoy gigs and mingle with others in the comfort and safety of their home.

 

Read more: Meetings in VR: The Future of Work & Collaboration

 

VR in Amusement Parks

It becomes increasingly difficult for amusement parks to impress modern audiences. Virtual and augmented realities truly resonate with this goal, as well as the aim to immerse guests in particular ‘themes.’

 

AR glasses or even a mobile app can enhance and enrich a visitor’s experience with extra information, amusing virtual guides, or gamification. VR headsets can instantly transport a person to another world.

 

A business that creates a unique ride in virtual reality or a user-friendly combination of mixed-reality (MR) content with existing roller coasters, drop towers, water slides, etc., can attract and serve more guests without expanding the park, generate a lot of buzz, and get a competitive edge.

 

Read also: VisionOs App Development: Use Cases and Opportunities

 

People enjoy successful implementations of VR in theme parks worldwide. There is Coastiality in Europa-Park, The Demon in Tivoli Gardens, and others. The first theme park built entirely around VR, the Oriental Science Fiction Valley, opened in China in 2018.

 

 

A theme park needn’t be a vast outdoor space with dozens of immense structures; there are “VR parks” that can only accommodate around 50 guests.

 

For existing theme parks, it is cheaper to develop a VR or AR application with several experiences than to acquire a property and build new material objects for every new ride. It’s also easy to customize such experiences, for example, before Halloween or Christmas.

 

Amusement parks may exist only in virtual reality but their rides make VR helmet wearers dizzy as real-life rides do. MR also can bring a virtual roller coaster to one’s living room. 

 

 

You can find these apps on Meta, Steam, and mobile app stores. The advantages for consumers are the same as with virtual concerts.

 

Read also: Implementing VR & AR in Medicine and Medical Training

 

VR in Museums and Art Galleries

It is possible to use VR in art galleries and various museums as part of a visitor experience or remotely, through VR apps that promote the institutions worldwide and increase attendance.

 

The world’s foremost and less-known museums and galleries actively create AR/VR apps for entertainment, educational, and publicity purposes. For example, the Madrid-based Thyssen-Bornemisza Museum has been offering immersive virtual tours of its galleries and temporary exhibitions since 2017.

 

Such VR tours allow people, regardless of where they are, using a VR headset or just a smartphone, to see the museums without having to travel and stand in lines and sometimes even interact with the artifacts and artworks.

VR and AR also add a new dimension to individual physical exhibits and entire collections. Interactive exhibitions are more engaging, fun, and helpful. There is hardly a better way to bring scientific principles and abstract notions to life. VR experiences on a museum’s premises make a visit more exciting, informative, and memorable.

 

For example, Onix developed a virtual tour of Banská Štiavnica, a UNESCO World Heritage Site in Slovakia. The VR experience blends artifacts scanned at the local museum with digital panoramas, transporting visitors to the medieval town or an ancient mine.

Read more: Virtual Reality in Museums: How VR Improves Museum Experiences

 

Such VR applications are unlikely to generate much income but can be a powerful marketing tool. Still, there is commercial potential for VR implementations in cultural settings.

 

The growing public interest and contemporary artists’ ongoing experiments with the new medium make a VR art gallery a compelling endeavor. For example, the ArtScience Museum in Singapore features a permanent gallery space equipped with state-of-the-art VR headsets and controllers.

 

Aiming to celebrate curiosity, innovation, and experimentation, the gallery regularly presents VR artworks from world-famous artists, scientists, museums, and film festivals.

 

 

Final Thoughts

The use of virtual reality in entertainment adds a new dimension to traditional forms of amusement and allows more personalized experiences. For example, owners of VR headsets can enjoy a music concert or movie night in the comfort of their homes. 

 

Museums and art galleries now offer more high-brow virtual reality entertainment to their visitors, while others can get a thrill at XD cinemas, VR-powered rides in theme parks, or arcades with various VR simulator games.

 

The adoption of AR and VR in entertainment businesses will accelerate, given the innovations made day by day, high competition, and growing customer demands. Particularly, it is likely to be a priority for amusement parks. Show producers, musicians, filmmakers, artists, and even casinos are also eyeing the technologies. 

Promotion and customer engagement is another promising application of AR/VR in media and entertainment. Innovation attracts public attention and appeals to tech-savvier audiences. AR and VR enrich the customers’ experiences and make them come back for more and spread the word.

 

The adoption of virtual and augmented reality in the film industry is still slower than we would like. There aren’t as many 360-degree and VR videos as 2D or 3D movies yet. More realistic VR cinema will take some time and innovation to happen. The examples of successful integration of live performances with VR are still few, and so on.

 

But businesses and artists using VR in entertainment today likely mark the next step in the industry’s evolution, like the previous adoption of Internet technology, PCs, or sound and video recording. The earlier they jump on the bandwagon and the more actively they invest, the bigger piece of the pie they might grab.

 

On this journey, they will need an experienced team of AR and VR developers with an exceptional command of programming languages and artistic gifts. Onix offers you just that!  

 

 

 

FAQ

 

What are the main types of virtual reality content?

To put it simply, you can watch three types of video content in VR:

 

• 2D videos. One can find these videos on YouTube or rip from DVDs and Blu-ray discs.

 

• 180 or 360-degree videos. Lots of these videos are available on YouTube. One can use the mouse to see things in those videos from different angles on a 2D monitor. VR headsets allow turning one’s head around, activating the head tracking system. Wherever you turn your head, you will watch your favorite movie! 

 

• Full VR videos. This format encompasses stereo/3D, 180, or 360-degree videos to give viewers a complete immersion experience.

 

What applications of virtual reality in the entertainment industry are gaining momentum?

 

• Online gaming and gambling
• Arcades
• Fitness games
• Amusement parks
• Cinema
• Music performances, sport events
• Museums

 

What are the applications of AR in entertainment?

Businesses and consumers are already using AR in entertainment and media fields like games, sports, music, movies, TV, museums, and social media.

 

Are VR and AR useful outside of entertainment?

Yes. The industries experiencing active adoption of AR and VR include education, science, healthcare, fitness, communication, marketing, ecommerce, and retail (e.g. virtual car showrooms and cosmetics, clothes, and accessories try-ons), fashion, real estate, construction, manufacturing, and others. 

 

What technologies and programming languages are used for VR apps?

VR developers can use a variety of engines and technologies, including WebXR web integration, but Unity is arguably the most used game engine. VR developers can work with many platforms, from PC to mobile.