AR / VR status survey: market is positive, immersive technology still faces social challenges

We are in the process of moving from change to another change - immersive computing. Last year was seen as the third wave of equipment used heavily in the dawn of the wave of augmented and virtual reality (ie, AR and VR). AR and VR represent two immersive technologies that can replace mobile computing.

In 2016, a series of major products entered the market. Companies that developed these products include Oculus VR, Sony, and Google. Since acquiring Oculus for $2.1 billion, Facebook has already acquired 11 AR/VR companies. There is no doubt that the company regards VR and AR as the next technological frontier. The massive investment and acquisition of technology giants indicates that these technologies will increasingly be combined with our platform for consuming content.

According to the latest forecast of Goldman Sachs, by 2025, AR and VR are expected to reach the market of 95 billion US dollars. As the chart below shows, the greatest demand for technology currently comes from the creative economy industry—especially games, live streaming, video entertainment, and retail—but over time, wider applications will involve healthcare, education, military, and Real estate and other industries.

AR/VR changes the way you create and experience content:

1. From "see" to "deep experience"

Artist and technologist Drata Kataoka stated that AR and VR will provide a new creative medium - "the artist's dream to construct the world with pixels." This means describing the world with an ever-expanding concentric circle and thus providing an unprecedented The technology of immersion and experience will replace the traditional linear devices. This will be a disruptive innovation: Instead of “seeing” content, users will be exposed to an ever-expanding virtual world and find themselves at the heart of this virtual world—the immersive nature of technology. .

Eugene Chung, founder and CEO of Penrose Studios, stated: “We have been using the same flat screen media for users since 1896. VR/AR uniquely provides presence and immersion. It is a new kind of art. Form, a new way of experiencing."

2. Reduce production costs

"Virtual prototypes" allow us to shorten the iteration time and cost in the product development process, while also improving the quality of the end product. For example, a design company saved 50,000 US dollars in cost for a certain aviation industry by using VR prototype designs, eliminating two physical prototype cycles and eliminating the time required to assemble custom samples.

The widespread use of virtual prototyping will allow companies to reduce the number of prototypes required and significantly reduce the time from concept design to production and commercialization.

While traditional technologies can also allow companies to prototype, immersive technology allows designers to more directly interact with their prototypes in an VR or AR environment. This means that immersive technology provides greater precision for the design, thus providing a higher quality and lower cost end product, which is beyond the reach of traditional prototype design.

3. New creator entry threshold is low

Immersive technology can also allow small companies to produce high-quality content at a lower cost. There are already technologies that can process 360-degree images in a matter of hours — before this technology appeared, the process often took several days. And movie makers can use this technology with less budget. As such, smart phones and applications make mobile photography no longer exclusive to professional photographers and enthusiasts. We can expect that AR and VR will open up new avenues of innovation for all of us.

4. Tools to enhance empathy and awareness

Immersive technology may also enable us to be more immersive in understanding global issues, such as humanitarian crises, so that people who are thousands of miles away are like being at the scene of suffering to arouse deep sympathy. According to artist and director Lynette Wallworth, AR and VR "provide a sense of realism that other media cannot achieve."

Although some people think that the increase in digital media consumption may make people sympathetic reduction. Many artists working in the field of AR and VR believe that this medium will become the "ultimate sympathy machine" and provide society with perspectives on other groups and identities. Gabo Arora, Founder and President of LIghtshed, UN Creative Director and Senior Advisor, explained: “You are digging a new grammar that tells stories and emotions.” If this positive view is proven to be effective, our world may be really It will become more full of creative, more humane.

VR and AR also have great promise in providing an immersive learning experience. In addition to instant gamification learning, VR and AR's biosensors have been used in the spiritual relaxation field, allowing one to use the brain for the first time in life. Emotiv's chief executive Tan Le said: "The immersive technology is a brain-enhanced form that can link our biological systems with digital devices."

Talent competition restricts development

In addition to technical challenges, another potential factor hindering the rapid development of the AR/VR field is the shortage of talents who cannot keep up with the pace of development. This is a "new" field, so there is no data to show the gap between talent supply. However, there are still clues to know a little. For example, data from the United States shows that in the second quarter of 2017, the industry’s demand for freelance workers with VR expertise grew faster than the demand for other skilled freelance workers, which was 30 times the same period last year. Similarly, a survey of more than 200 Canadian companies engaged in VR projects showed that VR will face a serious shortage of talent and eventually lead to “increasing business combinations”.

1. Strategically develop local talent

The government should develop a strategic plan to seize emerging technical talents to ensure that its country is at the forefront of the next computer development. China is an example of the early activists. Perfect World’s vice president said: “The Chinese government has provided a lot of support for the VR industry.”

For example, Zhongguancun in Beijing provided nearly 1.45 million U.S. dollars in funding for major companies to further develop the VR industry and positioned the region as the next global technology center. Other regions, including the village of VR in Beidouwan in Guizhou province, also provide funding for content development and investment. By 2019, Beidou Bay is expected to produce 1.5 million pieces of VR-related hardware and more than 500,000 software content transactions - and provide 3,500 new jobs in the process.

2. The introduction of foreign talent

The government can also actively invest in immersive content. A survey of 500 AR/VR professionals in 2016 showed that nearly 50% of companies are using their own personal funds to develop their companies; less than 8% of companies said they have funds from “other” channels, including government sponsorship . Considering that the cost of VR production may be as high as several hundred thousand, forward-looking decision makers are vigorously promoting the subsidy policy to attract VR talents from all over the world, and make great strides while protecting the development of the domestic industry.

For example, in France, the government-supported CNC Fund (CNC Fund) provides funding for VR/AR producers, works with local teams to produce content, and provides funding for all aspects of development and production. In a recent case, the fund provided 40% funding for a VR video clip costing about 500,000 Euros. The CNC is also authorized to provide up to 30% rebates for all or part of projects conducted in France and initiated by non-French companies.

How effective are these methods? Although its impact on VR content still needs to be evaluated, this policy seems to be effective in supporting French “traditional” film production. A year after the implementation of the policy, a total of 31 projects from 8 countries were launched, compared with 4 projects in the previous year. These projects, including blockbusters such as "Pirates of the Dream", are expected to have direct expenses in France at about 119 million euros, involving 450 days of shooting - compared to the year before the launch of the policy, direct spending was only 7.4 million euros, shooting The time is only 84 days.

Considering the initial stage of VR development, it is hard to say whether these benefits can really be transferred to this emerging industry, but the mechanism's attractiveness to creators is beyond doubt.

Immersive content is more personal but costly

Designers of software are increasingly focused on keeping users on their websites and applications because their business models increasingly rely on collecting personal data to produce personalized content.

Adam Alter, a marketing associate professor at New York University's Stern School of Business, describes the strategy as "a powerful big data drive" approach: "The company will inevitably perform A/B testing on different functions of the product and iteratively iteratively." The company will "set up a team of psychologists to win over the users according to the latest information."

In fact, evidence from the past decade shows that while our overall leisure time is constantly increasing, we spend more and more time on screen-based devices. The key driver of this shift is the use of interaction as a key success indicator for digital technology. The more time we spend on equipment, the more data we can gather about our interactions, resulting in more targeted products; as immersive technology becomes mainstream, this reinforcement cycle is likely to accelerate significantly .

As a result, the content we experience in immersive technology will become increasingly personal. This will be reflected in a variety of ways. Among them, the advertising industry will benefit the most.

1. More targeted advertising

Thanks to our personal data, advertising has become more and more personalized. In the context of immersive technology, people have created a new term - "gaze rate", used to describe the efficiency of augmented or virtual advertising to get users' attention. Companies such as Retinad also provide user behavior tracking analysis on VR/AR devices to increase the conversion rate of ads and how users interact with content.

So far, this new ad type has shown excellent user interaction effects, and its efficiency is 30 times that of mobile advertising.

2. More in-depth interactions can have a negative impact on health and privacy

The motivation to attract our attention brings two challenges. First of all, our health is at stake: obviously, non-screen activities are more healthy. A longitudinal study of major social media found that there is an inverse relationship between social media interactions and personal health, indicating that "both online and offline activities should be balanced." In the United States, teenagers who spend 6-9 hours a week on social media think they are less likely to be unhappy than their peers who spend less time on social networks.

Second, lack of control over personal information may make users conflict with long-term adoption of new technology. According to a report of the World Economic Forum, 47% of the population of six countries have stopped or avoided the use of a certain service because of insufficient user control, especially in China. This figure is as high as 70%. This shows that user privacy and data control are the primary concerns of consumers. Taking into account the deeper data tracking capabilities of immersive technology, such as eye movement and facial expression tracking, and touch data (touch-related), personal data at risk will bring more user privacy concerns than ever before time.

Some Suggestions for User Design Centers

1. Regulatory framework

Privacy issues related to traditional media have emerged in immersive content. If developers are reluctant to provide clear and acceptable terms of use, regulators must intervene in personal protection—a measure that many jurisdictions have taken.

The regulatory framework that has been implemented in traditional digital technologies can provide the best reference for how to monitor future immersive technologies. In the European Union, the "General Data Protection Regulations" (GDPR) will take effect in 2018. The law not only stipulates that the data collection must first obtain the user's consent, but also obliges the company to remove personal data as required. In the event of a violation, the company can face up to 4% of the company's annual global turnover. In addition, the bill also includes the concept of "data portability", which allows users to use data across platforms - a measure that effectively motivates innovative startups to compete with large companies. Of course, other similar immersive technology regulations are also developing.

2. To provide users with personal data sovereignty

Analysis shows that the major VR companies already use cookies to store data, and they are also collecting information on location, browser and device type and IP address. In addition, communications with other users in the VR environment will also be stored, and all data can be shared with third parties and used to personalize products for marketing purposes.

Concerns about collecting personal data have spawned temporary solutions to provide buffers between individual users and businesses. For example, the “Privacy Supervision” launched by the Electronic Frontline Foundation is a browser plug-in that automatically masks hidden third-party trackers and allows users to customize and control the amount of data they are willing to share with online content providers. Solutions like this that return control of personal data back to users also apply to immersive technology. But for now, the data protection tools available to individuals who are both uncomfortable with data collection and are eager to explore AR/VR are really primitive and limited: they can only use the "offline mode" or configure the files separately for new devices.

3. Manage consumption

There are also short-term measures presented by the cease-to-use mechanism to solve the problem of overuse. According to reports, in the UK, 71% of young people support the use of a warning that pops up if the length of use approaches or exceeds the health limit. Services such as unGlue allow parents to set filters on the types of content their children are exposed to, as well as set usage time limits for individual apps.

All of these measures can also be applied to immersive technology as a supplement to actual regulation. For example, South Korea’s “Close Act” prohibits young people under the age of 16 from visiting the game site between midnight and 6:00 a.m. This policy is implemented because it associates personal data (including date of birth) with the citizen's resident registration number, and the user must submit their resident registration number when registering online services. These methods are not absolutely reliable: For example, a clever child can continue to "borrow" other adults' devices to solve the restriction problem after hours. Further research is clearly necessary, but we believe that long-term solutions should lie in better design.

4. Rethinking the success indicators of digital technology

As companies continue to develop applications that use immersive technology, they should transition from using indicators that measure user engagement to those that simultaneously take into account user satisfaction and health promotion. Alternative indicators may include the customer's recommendation score for the software—that is, the degree to which the user, and even the regulatory agency, is willing to recommend it to their friends based on the social contribution and satisfaction of the software service.

However, the real challenge is to identify measures that meet business policies and user goals. Tristan Harris, founder of Time Well Spent, believes: “We must face the current misalignment so that we can find a solution.” In fact, user experience improvement and business opportunities do not always run counter to each other. Subscription-based service is one of the cases: YouTube Red will clear ads for paying users, as does Spotify Premium. Users can pay for an ad-free experience for a fee, and content developers do not have to bear any costs because they can receive revenue from paid subscriptions.

Immersive technology To make the interaction between users and content and media more enjoyable and fulfilling, we still have a lot of work to do. The realization of all this depends mainly on placing users at the core of their value proposition.

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