What do entertainment companies do

Today it is possible to own the audience, and massive amounts of audience data represent a near-insurmountable competitive advantage. User-generated content, after all, is amateur fare: videos of cats riding Roombas and kids playing Minecraft.

Distribution is also much easier now: long-tail markets make it possible to allow everything to be put up for sale, a big shift from the limited capacity in movie theaters and limited space on television broadcast channels. Will movie studios, broadcast networks, music labels, and publishing companies view this book as the new rule of the road or the raving of Cassandra?

Time will tell — and for legacy companies, time is running out. Similarly, Oculus Venues enabled soccer fans far from Russia to experience select matches when that country hosted the world cup. Far from encouraging solitary pursuits, immersive technologies will increasingly combine elements of community and real-time interaction.

Peloton, the virtual cycling machine, is a pioneer in this field. Cycling enthusiasts use an advanced exercise bike to stream indoor cycling lessons at home.

Discovery: Today consumer search and comparison shopping are still largely considered a time-consuming chore. But the next great content convergence will enable much more stimulating ways for consumers to explore new products, services, and locations. Tour operators can offer virtual tours of different locations for people planning a vacation. Promising developments in haptics and olfactory technologies —the ability to sense, transmit and receive scents and aromas via digital media—could soon transform consumer discovery in industries such as fashion, perfume, food retailing and dining.

Imagination and storytelling: If a picture is worth a thousand words, then how much more powerful must be the combination of sight, sound, touch and agency that virtualisation brings. An early entrant in this business was BooksARAlive. Traditional text is merged with digital content, using a smartphone, tablet or game console. Apps can play video, create 3-D models for content, and allow interaction with the text.

Even companies beyond the media and cultural sectors are seizing upon virtual storytelling to change the way consumers interact with their products. Allianz , an insurance company, built a virtual house which customers could interactively explore to see potential dangers. These included a damaged toaster or a cracking aquarium. Moving from a world of making things and services to one defined by entertainment and stimulation will be far from easy.

To be successful in this world, companies will need to think much more like an entertainer than a producer or retailer. The company distributes its programming through broadcast and cable television, direct broadcast satellite services, and online streaming video platforms. Fox also manages production facilities including studios, sound stages, editing bays, and theaters.

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