UPDATED 13:41 EDT / NOVEMBER 14 2016

NEWS

IMAX raises $50 million fund to jumpstart move into virtual reality

IMAX Corp., the cinema technology company best known for its theaters with giant screens and 3D technology, has completed the first phase of a $50 million virtual reality fund.

Investing alongside IMAX other partners include Acer Inc., one of the world’s premium hardware and manufacturing companies; and Creative Artists Agency, the world’s leading entertainment and sports agency. Other partners include China Media Capital, Enlight Media, The Raine Group, Studio City and British advertising media firm WPP.

The fund, announced last week, is expected to fund the creation of at least 25 interactive VR content experiences over the next three years across all current VR platforms, including its upcoming IMAX VR centers.

“IMAX has built its legacy on using innovation and creative collaboration to drive the further adoption of new technologies,” IMAX Chief Executive Richard L. Gelfond said in a statement. “Today, we are expanding upon that legacy by teaming up with leaders across the media, entertainment and technology space to unlock a new level of premium, high-quality content for use throughout the VR ecosystem.”

The VR market continues to dazzle analysts and experts with expectations. An August report from International Data Corp. claimed that virtual reality and augmented reality would become a $162 billion market within four years. The firm expected that this would represent a skyrocketing 181 percent compound annual growth.

Much of this growth is being fueled by the introduction of new VR and AR technologies and entertainment options to consumers as well as ways for businesses to take advantage. These technologies include the ever-growing list of VR headsets from Facebook Inc.’s Oculus Rift, Sony Corp.’s Playstation VR and Valve Corp.’s HTC Vive. On the mobile VR side, Google Inc.’s Daydream VR and Samsung Gear VR have already come to market.

IMAX already has partnerships with current and upcoming VR headset markers with apps in VR marketplaces such as Daydream VR. With this new funding round and IMAX’s interest in VR technology and entertainment, the number of VR headsets and platforms branding with IMAX apps will most likely expand.

The company is currently in the midst of introducing experimental IMAX VR centers in theaters in the United States and the United Kingdom. One VR center will be built in Los Angeles and another at ODEON & UCI Cinemas Group’s Printworks multiplex location in Manchester, England.

Other experimental facilities have been planned internationally, in China, Japan, the U.S., the Middle East and Western Europe in the coming months.

With full VR headsets relatively expensive, the cheapest expected from Microsoft at $299, many people’s first VR experience may come from going to a theater to put a headset on. To keep people interested in going into a dark room, putting on a half-helmet that covers the eyes and watching a 30-minute to two-hour presentation, IMAX will need a lot of interesting, engaging content lined up.

Featured image courtesy of IMAX

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