Strategizing XR for Video
XR technology is getting better, smaller, more wearable, and more affordable. Interest is growing and end users are becoming more open to engaging with immersive experiences. Yet to date, we’ve mainly seen experimentation rather than strategic commercialization. Now that technology giants Google, Samsung, Meta, Apple and Qualcomm have all thrown their hats in the ring, media companies are starting to consider how and when they should leverage XR. This means it’s time for video providers to look much more seriously at developing an XR strategy.
When Playing it Safe Becomes High Risk
XR’s journey to date been far from linear. Instead, it’s been characterized by periods of significant innovation and hype, as well as fast, slow, fast growth cycles. But despite this zigzag pattern of awareness, interest and adoption, the overall market is trending in the right direction.
In its report on the XP Market in 2035 and Beyond, analyst Omdia predicts that sales of XR devices are expected to increase substantially over the next two decades. It forecasts that by 2035, 61.5 million XR devices will be sold annually, with a value of $47.1bn in 2035. And by 2045, this will increase to more than 200 million XR devices being sold annually, with a value of $217bn. For comparison, in 2025, around 14.5 million devices were sold, which was already up 41.6% year-over-year.
While up to now, the majority of service providers have opted for a play it safe strategy, which has largely meant watching and waiting, this is become a flawed plan. The biggest risk with XR is not moving too early as some would expect. The greater risk comes from inaction now which will result in moving too late.
Waiting until the perfect conditions are in place by which time XR hits the mainstream will result in missed opportunities. There’s a danger then that video providers will be forced to react a certain way under pressure as they play catch up. This will remove some of the freedom of choice over what role XR will play for an organization. Consequently, video providers will benefit most from strategizing XR sooner rather than later. With that in mind, how should media companies best decide what approach will work best for them and how should they cement that into an XR strategy?
Where to Begin
XR strategies will undoubtedly vary greatly between different organizations and types of services, so a number of different considerations need to be weighed up early on in the planning stage. This includes looking at the type of content that works best with immersive formats and looking at how XR can add value to different experiences.
For example, this could mean leveraging XR for premium, immersive content experiences to bring fans closer to high value live experiences, such as music concerts or sports matches. For those fans already emotionally invested in a sport or team, or for music, in an artist or band, being able to feel closer to the action will justify paying a premium. But just as the same OTT business model won’t by suitable for all OTT businesses, the same XR strategy won’t work for all.
Rather than developing a whole new content platform for fully immersive experiences, another approach might be to enhance existing content with additional digital layers to provide more value. As well as appealing to users who are already engaged with XR, this strategy also opens the door to new upsell opportunities for existing subscribers who may not yet be fully on board with XR.
It’s also important to decide which XR ecosystems to develop content for because there are key differences in the development process, and ability to scale. Android XR sits at one end of the spectrum offering lower barriers to entry and a more extensive range of devices covering headsets and glasses. On the opposite side sits Apple which while setting the standard for premium quality immersive experiences, does not offer the same device flexibility, and ease of entry that Android XR offers, which in turn limits the opportunity to scale.
Learning is Accelerated with Collaboration
Strategic partnerships and collaborative working have proven to be critical in the video, technology and wider M&E industry, in part because this approach enables shared technical expertise and resources, which accelerates innovation and speed to market.
Given that the XR industry is very much in its infancy and businesses are still learning what works best, strategic partnerships and a collaborative approach are especially important. Therefore, another key consideration early on will be deciding how to partner, and which partnerships will be most beneficial. For broadcasters and sports rights owners, partnering with operators and OEMs will likely make most sense because it’ll help to add value and create a stronger supply chain.
Joining a strategic initiative such as the XR Sports Alliance (XSRA) is one way to fast track XR learning and innovation, and at the same time, establish valuable partnerships that will over time support and develop XR progress and adoption.
Understanding the XR device landscape
Other considerations include exploring which headsets and glasses are available in the target region and deciding which device category to target. XR is an umbrella term covering virtual reality (VR), augmented reality (AR) and mixed reality (MR) and there are a range of different XR devices with varying value propositions. So, to decide on the best approach and strategy, it’s important to understand how XR devices categories differ.
On the headset side, devices range from VR only headsets that completely obscure the wearer’s real world to provide full immersion, to MR headsets that allow VR as well as AR pass through. This enables users to enjoy immersive video as well as interaction with digital objects overlayed on their real environment. Then we have AR glasses, both wired and unwired, which are by definition smaller and more wearable than headsets. These allow the wearer to enjoy overlayed contextual text and images to enhance their real-life experience, whether that is watching a sports match, concert, sight-seeing, or navigating through a city.
MR glasses are set to take XR devices to the next level by enabling overlays as with AR glasses but also enabling full VR. In the same report mentioned earlier, Omdia forecasts that MR glasses’ commercial debut will be around 2032 and expects them to become the central XR platform over the next two decades.
When deciding on the right strategy, it’s important to consider what device category you’re building for because the appeal to users and value they offer differs greatly between say MR headset and AR glasses.
Commitment to Intent
XR may well be taking longer to hit the mainstream that many of us XR enthusiasts had previously wagered. Despite that, devices are undoubtedly improving, ecosystems are forming, the will is growing, and the commercial foundations are starting to take shape.
Crucially, it won’t be hardware alone that drives XR to scale, but the commitment to intent and strategic decisions that technology and M&E businesses make around content, business models, and partnerships in the years ahead. For video providers, the best approach is not to wait for certainty, but to define early what role XR should play within their broader strategy then begin small, to actively build that capability.
[Editor's note: This is a contributed article from Accedo. Streaming Media accepts vendor bylines based solely on their value to our readers.]
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