The Live Events Industry Needs Mixed Reality
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When we look back at the early 2020s, many will describe the period as transitory in nature. Wearables are increasingly grabbing the spotlight from mobile while new technologies such as mixed reality are still a little bit off in the distance. We are starting to see glimpses of what mixed reality, more commonly referred to as VR, will be about, including activities that stand to benefit from mixed reality. A great example is seen with the live events industry (theaters, plays, fine arts and music venues, and all of the corresponding backstage and support companies).
As part of the pandemic relief stimulus program passed by U.S. lawmakers earlier this year, the Shuttered Venue Operators Grant program has been described as a $16.2 billion “bailout” of the U.S. local entertainment industry. Forced shut by the pandemic in 2020, many companies that put on or support live events faced financial distress.
Last week, the U.S. government released data on bailout recipients. Here in Connecticut, 131 theaters, cinemas, event promotors, talent agents, and various other entities tied to live events have received $100 million from the program. (If you live in the U.S., you can check out which of your local institutions received funds here.)
A very good argument can be made that using taxpayer money to support the live events industry following a once-in-a-century pandemic makes complete sense. For many of these companies, the bailout funds will directly prevent their doors from closing. However, for me, seeing the breadth of those needing bailouts as well as the amount of funds received put a spotlight on an industry that has become dependent on various kinds of financial support for its survival. Many of you, including those outside the U.S., can probably think of local stories in which a live events venue (theatrical plays, concerts, fine arts etc.) needed financial help to survive.
Instead of looking at this development with distress, there is an opportunity for technology to play a role and not only keep the live events industry alive but also bring it to new heights. That may seem like too rosy of a projection, especially as technology has long been viewed as a culprit or accomplice in the decline of live events. In the essay, Movie Theater Nostalgia, we talked about how movie theaters face severe headwinds going forward as they battle the rise of on-demand content consumption and new-age communication mediums. The item that may have been missed in the discussion, and which pandemic stimulus has now helped expose, is that the live events industry faces structural headwinds without considering technology’s impact.
Needing people to travel to a live events venue and pay what is an increasing amount of money for a seat in order to be entertained for anywhere from one to four hours has become an increasingly difficult proposition to wrap a business around. The idea was a lot easier to achieve decades ago when consumers had limited entertainment and travel options. Going to the movie theater used to be a half-day affair. I recall stories of my mother going to the “movie theater” with her family as a young girl with groceries in hand. The movie theater made it possible for patrons to store their groceries purchased next door in a fridge. The theater ended up selling relief before people needed to lug their groceries back home.
As the decades progressed and consumers saw more travel and entertainment options, live events began to face headwinds that have only gotten stronger. It’s not that the industry was suddenly wiped away because of technology but rather the economics have gradually become harder to overcome. As the number of people buying tickets to events like plays, theater, and other fine arts venues declined, ticket prices went up to compensate for the weaker demand. Today, paying $100 to $200 for a mediocre seat at a local theater for an off-Broadway show is not uncommon. Such pricing is needed to keep the lights on - and that’s after the impact from significant fundraising, support from boosters, and government grants. The live events industry has been on life support for a long time.
Technology has a role to play here by expanding the size of audiences consuming live events. By wearing a headset that blends one’s actual surroundings with technological enhancements, the feeling of being somewhere else, such as inside a live events venue in a different city, state, or country will be made possible. Instead of going through such experiences alone, it will also be possible to experience such events with families and friends either seated in the same room or thousands of miles away.
The idea that a local venue can put on a play and have more people watch the performance than there are seats found at the venue introduces entirely new economics. Ticket pricing could plummet similar to how software pricing declined while smartphone adoption moved higher. There would no longer be a need to break even off of a very limited base of patrons. Thanks to mixed reality, live events that may never have made financial sense could become a reality leading to far more advanced live events than those we see today.
This discussion extends beyond live theatrical events to include mixed reality helping music and sporting events and even interactive sites like museums, zoos, and aquariums. It’s not so much that these locations will fail to exist in physical form without mixed reality but rather that technology can introduce such events to far larger audiences. Geographical limitations and other limitations dealing with space (limited parking, square footage, seating, etc.) go out the window. By completely rethinking how we consume live experiences, mixed reality can the turn the live events industry into something that we have never seen before.
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