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May 16, 2016

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The new reality of the gadgets for consumers

EDITOR’S note:

Internet Plus, a concept highlighted in the government work report delivered by Premier Li Keqiang at the annual session of the National People’s Congress in Beijing in March, is pushing the boundaries of China’s traditional industries. Nowadays, enterprises across the country are embracing changes by incorporating advancements in the Internet and related technologies into their business models. In a series by Shanghai Daily, we explore how this concept is reshaping our world.

Journalist Vera Wang said she was “shocked and moved” to see her favorite singer, Taiwan’s Theresa Teng, in a stage performance. The reason: Teng died more than 20 years ago.

The magic that resurrected Teng is called virtual reality, which uses advanced technologies like 360-degree viewing and vivid 3D interactive experience. The magician is Youku Tudou, the country’s biggest video website, which announced a strategy to expand use of the technology at the CES Asia show that closed on Friday.

Besides the virtual performance of the legendary Teng, Youku Tudou has applied the technology to games, travel, music and education, including space travel experience in the virtual world.

Youku Tudou is not alone in exploring new boundaries. In the past two months, HTC, Huawei, iQiyi and a dozen other firms have announced expansion in the realm of virtual reality. Their ambitions run the gamut of the industry, from professional devices, smartphones, content production and publishing platforms.

“A new wind is blowing,” said Youku Tudou Chairman and Chief Executive Victor Koo. “We can create a dream world without screens or boundaries with virtual reality technology.”

The market for China’s virtual reality devices is forecast to grow fourfold this year to 720 million yuan (US$112.4 million), according to research firm Analysys International.

Globally, revenue in the industry is expected to top US$80 billion in the next decade as smartphones, glasses, games and other devices become increasingly integrated into the consumer market. Popular applications include video games, live content and video entertainment, with practical uses emerging in healthcare, real estate and retail markets, Goldman Sachs said in a recent note.

In China, devices and applications are already available to consumers, with more services set to debut. That’s a contrast to a year or two ago, when virtual reality was more of a buzzword than a fact of life.

At the recent show, Youku Tudou announced plans to produce virtual reality films, including the Hunter Games 3 in cooperation with Lions Gate Films. Also on tap are entertainment shows shot with virtual reality cameras and documentaries related to space travel and Arctic expeditions.

Another video website iQiyi said early this month that it hopes to attract more than 10 million virtual reality users in China in the next 12 months, using a new ecosystem. It has cooperated with more than 300 firms, covering hardware, games and content providers in tourism and entertainment.

The platform include two iQiyi apps designed for all head-mounted virtual reality devices currently available on the market, a virtual reality partner incentive program to make 10 copyrighted online films and dramas, and 100 copyrighted games in virtual reality versions.

At CES Asia, China’s top consumer electronics show, an array of start-up companies displayed the latest applications of the technology.

Website Hotcast.cn displayed a virtual reality platform to publish and distribute content online, giving users easy access to the new technology. Marketing firm Isobar displayed Bvrain, the world’s first virtual reality goggle that customizes games based on human brain activities. Even Coca-Cola Co is getting in on the act, marketing new beverages to cinema-goers based on viewers’ reactions to watch virtual reality video clips of the latest films.

Meanwhile, Youku Tudou also announced the establishment of a virtual reality fund to encourage the production of more content in China. In March, ChiNext-listed Baofeng announced it would initiate a similar fund, endowing it with 300 million yuan.

For a long time, China has lacked the content and applications for use in virtual reality devices. But the outpouring of new capital into the sector is expected to advance the ambitions of content firms like Youku Tudou, iQiyi and LeEco, industry insiders said.

In recent years, investment in the development of virtual reality hardware has outstripped financing of content. Companies like Sony, Samsung, HTC, Baofeng, LeEco and Huawei have invested heavily in virtual reality devices.

For example, sales of Baofeng virtual reality glasses, a Chinese version of Google’s Cardboard, have hit 1 million units and are expected to rise to 10 million this year.

Virtual reality is becoming integrated with smartphones, thanks to technology advances such as high-definition screens and strong graphic chips.

Huawei Technologies, China’s top smartphone vendor, has launched virtual reality devices that support its new Honor V8 model, the first V-coded product referring to virtue reality.

“Smartphone technology is now ready for virtual reality devices, and we will see surging demand for it in China,” predicted Zhao Ming, Huawei Honor’s president.

Besides Huawei, companies like Samsung, Qihoo 360 and LeEco have developed virtual reality devices as optional accessories.

“I am now seriously considering buying a virtual reality gadget,” said journalist Wang, after viewing the performance of the beloved singer Teng.




 

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