ILLUSIONARITY

What We Do

Illusionarity is a new video platform exclusively for high quality VR and AR content
Our mission is to create new possibilities both for VR users and for VR content creators everywhere by connecting them to each other and facilitating the process of content discovery, customer engagement and monetization
We want to follow customer demand, by identifying, aggregating and distributing quality VR content that users desire and ready to pay for.

The Problem

VR industry still faces fundaments doubts linked to both technology/content and consumer behavior. While daunting, this is not dissimilar from the early challenges faced by PCs, mobile phones, etc.

Millions of expensive VR devices gathering dust

__% of users stop actively VR devices after 30 days

Users’typicalcomplaint:notenoughcontent

Other problems: subpar quality content, expensive, uncomfortable, heavy, awkward looking VR headsets Intense competition for consumers’ time and attention from all directions (Instagram, TikTok, etc.)

Content providers’ main problem: not enough engaged users

Other concerns: Hollywood embrace of 3D movies was a flop, turning 2D content into 3D does has not been a good investment for media or gaming companies Many companies walked away from their initial VR content efforts (Microsoft, Netflix)

The Solution

A new VR platform dedicated exclusively to high quality content with proven monetization potential

We aim to put the “wow” factor back into VR

Niche content approach

We understand and follow consumers’ behavior, observe what they actually want and like, and dictate what they “should watch”

Encourage users to expand into other categories of VR content by cross selling

We believe that a customer who is already consuming VR content in one category is more likely to try other types of VR content

The Market and Technological Context and Trends

VR user base growth to date

The number of VR headsets will grow due to the existing pace of sales. 2023 headset sales decreased by 24%, but the installed base increased by over 30%. Quest 3 released in October 2023 and Apple Vision Pro released in February 2024

Improved and less costly VR hardware

Lower cost and better design of future headsets will further drive the adoption. Mass adoption is likely to happen, but when? It is possible that current forecast greatly underestimates future growth? (similar to early modest forecasts for PCs and mobile phones) Example of consumer response to better product: sales of second-generation Meta Ray-Ban exceeded expectations.

Arrival of highly realistic 12K content

12K cameras adoption has already began Significant impact on customer behavior is observed (true?)

The content providers market remains highly fragmented

12K cameras adoption has already began

Our Key Insights

People are already willing to pay for quality VR content of certain types

Company X example: founded two years ago, 100,000 paying subscribers, $1.5m in monthly revenue

It is still a “blue ocean” with available demand exceeding the availability of high-quality content that is well presented, easy to consume
New customer acquisition costs are currently very attractive
Major customer adoption improvement can be gained by better presentation / marketing (site redesign, cross marketing and simplified consumer experience, especially via a VR player app that can be uploaded into the device)

Market size

No “killer” VR app has yet emerged
Despite the absence of a “must have” VR application or us, the VR content market is already substantial, currently estimated $5B+
Market is highly fragmented, with a lot of experimentation by small content providers across many categories.