Consider a scenario where one of your favorite artists is performing, but the show is sold out and even if you could get a ticket, you would be so far away from the stage that you might as well just stay at home. So, how do you manage to not compromise the experience while taking into account the convenience and economic factors? 

This question can be answered with technologies that are taking over the sphere of entertainment - Virtual Reality and Augmented Reality, as the entertainment industry is constantly evolving.

VR & AR Basics

Virtual Reality technology puts the user in a computer-generated environment, allowing them to interact with simulated elements via a headset. On the other hand, Augmented reality incorporates elements that are generated, be it visual, audio, or other sensory elements into the real world via technology. AR technology lets the user position his or her smartphone to a point in the physical world and bring it to life by adding virtual components via this technology.   However, both are similar in that they deliver an immersive user experience.
The technology of music distribution is varied and constantly evolving - whether live events, radio, multi-channel music (stereophonic, surround sound, ambisonics), songs with music videos, concert live streaming, incorporation of AR into videos, or live concerts transmitted using VR and AR.
While live streaming concerts are not new, it gained popularity due to the pandemic. So what motivates people to attend concerts in person? 

Other than seeing an artist perform and discover new music, there are social motives associated with going to concerts that help develop interpersonal relationships mixed with the enhancement of social status. 
Though convenient, live streaming of concerts takes away the essence of ‘space’ and ‘presence.’ Organizers are not selling concert tickets, rather, they are essentially selling the digital experience. Virtual reality offers a virtualized sense of presence and space.  While virtual concerts may not be a standalone solution to make concert-goers happy, immersive technology such as mixed reality technology can serve as an addition to the original concert experience, be it from a financial or health perspective, given the current state of the pandemic.

The Trend of VR & AR in Creative Industries

As presented in Figure 1 below, VR and AR are on an upward trend in the video gaming industry, with a projection of $27 billion, followed by live events at a projected $9 billion by 2025. However, this figure does not consider the important variable of the pandemic, which made the world heavily virtual. As pandemic conditions constantly change, it is no surprise that VR incorporated into live events will become a natural market opportunity.

VR and AR technologies are increasing in popularity. Now, with developments in 5G technology and its integration with AR and VR, integrating mixed reality in concerts and other events is becoming more prevalent. In the entertainment industry, these technologies are the most popular in the gaming world, with market size of 6.26B USD in 2020. 

 Moreover, the onset of COVID 19 has only increased the scope of this technology’s use in the entertainment industry. 
In order to use VR consumers must invest in a headset.  In AR, a smartphone is required. VR tech is backed by businesses that are heavily funded. The most popular headsets are Oculus, HTC Vive,  and Sony Playstation VR. As such, these technologies promote human connection in a virtual manner, paving the way for a social experience.  Thus, the growth of this area seems inevitable. While it is not yet a market majority, people are slowly embracing these technologies and larger tech companies are reliant on their use in the future. 

At the time of the acquisition of Oculus by Facebook, Dan Rose, Facebook’s VP of content and media partnerships added to this sentiment by stating that virtual reality will be the on-ramp to optical computing. 
The application of Virtual and Augmented reality in music has been around for a while. From collaborative creation and interactive music videos to its incorporation in art museums, it seems as if the industry is competing with itself to enhance the experience for the people. With concerts being a highly user-oriented experience, these technologies have started gaining more traction. The demand for interactive and immersive experiences called for innovative models to be incorporated within music. Thus, the application of such models is added to the concert experience with the implementation of. VR and AR technologies to help maximize its interactivity. Data shows that the VR/AR market is projected to increase by more than 7 times between 2018 and 2022.  The incorporation of these technologies in live entertainment not only contributes to consumer satisfaction but also acts as an additional source of income that will be taken advantage of by the industry.