Meta brings smart TV experience to VR
What's the story
Meta is adding a new app for its Quest VR headsets, called Horizon TV. The app closely resembles the interface of a typical smart TV, with big hero images promoting selected shows and movies, a row of app icons, and additional content recommendations. Unveiled at Meta Connect last month, the app is part of the company's strategy to attract non-gaming audiences to virtual reality (VR) technology.
Revenue potential
Potential challenges with advertising in VR space
The launch of Horizon TV also opens up a new revenue stream for Meta, which has been looking for ways to introduce advertising into the VR space. However, this approach could bring along some of the challenges that smart TV platform operators have faced for years. If users start consuming more content on their headsets, they may find themselves dealing with issues stemming from the ongoing streaming wars.
Content sources
Content partnerships for Horizon TV
Horizon TV's content comes from a few select partners such as Amazon, Pluto, and Peacock. The app also features icons for YouTube, Spotify, DAZN, among others. Disney+ and ESPN are expected to join the platform soon. However, popular services like Netflix, Hulu, and HBO are missing from the lineup, along with several free video services such as Tubi and The Roku Channel.
Revenue strategy
Revenue generation through existing business models
Meta's decision to adopt existing smart TV business models could eventually lead to revenue generation through Horizon TV. Smart TV manufacturers often take a share of ad and subscription revenue generated on their platforms. However, this approach has also led to strained relationships with publishers, as seen in Google's case with Netflix over full integration into its Google TV platform.
Content evolution
User-generated and immersive content on Horizon TV
Horizon TV still features some animated user-generated content (UGC) created with Quill and similar tools, thanks to a partnership with the Theater Elsewhere app. The platform also has an "immersive" section that includes 180-degree video documentaries and Meta-produced content like the VR show The Faceless Lady. Meta plans to add more 3D content from James Cameron's Lightstorm Vision production outlet in the future.