Baidu, alibaba, tencent VR investment layout.
Compared with its overseas competitors, BAT is doing different layouts for virtual reality (VR). Facebook with the United States, Japan and Taiwan's HTC SONY companies, such as China's three companies have no helmet equipment development and investment, but became the middlemen: when there is an a dominant helmets, they will create a platform and content.
In China alone, there are 688 million Internet users, and BAT already has a large number of virtual reality content consumers. According to iMedia, a research firm in guangzhou, China's fast-growing virtual reality market is expected to reach 55 billion yuan by 2020, up from 1.5 billion yuan last year. According to Canalys, 6.3 million vr headsets are expected to go on sale globally this year, with Chinese consumers accounting for 40 percent of the total.
In this article, we look at BAT's investments in VR and how they affect China's booming virtual reality market.
In may, baidu said it would build the world's largest Chinese virtual reality service through iQIYI. IQIYI has partnered with more than 300 partners, including China's virtual reality manufacturer Beijing storm technology. IQIYI also recently released an app that allows movies or games on the iQIYI platform to be compatible with a headset. IQIYI is also launching live streaming concerts and making virtual reality films, which will be more flexible in the future and will be adjusted according to consumer preferences.
China seems to be a promising virtual reality video content market. China's ministry of industry and information technology said that immersive video and gaming apps were expected to become one of the first areas of the virtual reality industry. About 504 million Chinese consumers have regularly used media streaming sites, which may help to quickly catch on.
Companies that are leading China's VR market are increasingly turning to creating entertainment experiences, unlike the us, which has focused on building expensive high-end hardware. Niko Partners last year a survey found that Chinese consumers a high interest in virtual reality, half of the Chinese consumers interested in virtual reality, 30% of consumers are willing to pay $200 for a device.
Tencent also on video and virtual reality game content, for music artists held the concert live virtual reality, and bought the copyright of 300 Japanese anime series, is expected to develop more mobile phone games. China has nearly 400 million online gamers, and online gaming revenue is expected to grow from 143 billion yuan last year to 251 billion yuan in 2018, according to the China Internet data center.
Tencent has also invested in Original Force, which created virtual reality content generated by computers and is developing virtual reality films to be used with Oculus Rift. Original Force is also working with Pulse Evolution, which created a hologram of popular music stars for the concert. These investments have strategic implications for tencent, which needs attractive content to keep the 1.3 billion active users on its WeChat and QQ instant messaging service for a longer period of time.
Meanwhile, alibaba is building a virtual reality shopping experience for its 400 million users. Bloomberg reports that the Chinese e-commerce giant has created 3d rendering for hundreds of products and will enable businesses to create their own virtual shopping experience. Last year, alibaba launched the virtual reality shopping center, called Buy+. It USES the Google Cardboard VR device Cardboard, which can be distributed in almost every situation. This way is likely to be more suitable for Chinese consumers, because they are generally less willing to spend a lot of money at the high end of the game, but on cheap mobile devices and virtual reality experience has warmed up. Alibaba said it had tested the platform for 30, 000 users within an hour of its launch.
In addition, alibaba has launched a payment service that allows shoppers to pay for virtual reality items using virtual reality technology, with nod gestures. As is known to all, VR Pay technology authenticates users through biometric recognition technology, such as identifying the unique sound of each consumer before authorizing the payment of a product.
So far, there has been no clear leader in China's massive virtual reality competition. But clearly, BAT layout is mainly in beyond hardware business, to create a dominant platform and meet the content of the platform, as a kind of helmet preparation equipment in China as they appear.