Bold Business Logo

The New Entertainment Culture of COVID, Part 2 – The Virtual Convention

The global pandemic has forced each of us to consider new norms that we never expected to face. Major sports entertainment like racing, hockey, and basketball now play within protected bubbles without fans. Music concerts are now streamed online with the occasional watch party event. And on-demand streaming of recorded programs has occupied much more of our free time than previously. But these are not the only entertainment events being forced to adapt to a post-COVID world. And the rise of the virtual convention reflects these shifts.

Naturally, sporting events and music concerts comprise a substantial portion of entertainment dollars generated each year. However, a significant portion of global entertainment revenues also come from conventions and festivals designed to attract thousands. These entertainment events range from large gatherings of enthusiasts to various types of collectors. These events account for a notable portion of the $8.9 billion the entertainment industry is expected to lose in 2020. And like other entertainment venues, these events hope a virtual shift might allow them to survive.

“There’s a great deal of business that occurs the weekend of Comic-Con in San Diego. It’s different, but we’re trying to bring some of the stuff online. It’s a new experience for us, but we hope it’ll be as fun but in a virtual format.” – David Glanzer, the spokesperson for Comic-Con

Comic-Con and the Virtual Convention

One of the most notable entertainment events each year is Comic-Con held in various cities. Millions attend each year dressed in crazy costumes and eager to engage with other comic enthusiasts. In Sand Diego alone, roughly $149 million in revenues are generated for the city each year with this event. But this year, the 130,000 fans won’t be attending in person. Instead, Comic-Con will exist as a virtual convention free to all. Panels, presentations, watch parties and more will all be available online for anyone wishing to attend.

A group of wannabe superheroes
A virtual convention means all cosplayers and costumed enthusiasts will have to stay online.

The virtual convention experience is one that is certainly unique. In New York, ReedPOP is responsible for providing the virtual platform for the Comic-Con event. It’s Metaverse platform, in collaboration with YouTube, offers attendees an online connection experience. In addition to livestreamed panel discussions, live chat options will exist. Also, for a fee, a 3-minute meet-and-greet sessions can be arranged with select presenters. While the experience isn’t the same as attending in person, ReedPOP believes its potential for attendee engagement is tremendous. And it also hopes it will evolve into a new venue for entertainment events of all kinds.

“Collector conventions are traditionally a great way for us to interact directly with our fans. But the impossibility of meeting in-person this year created an opportunity for our portfolio of apps to shine, and for us to engage digitally with our fans in this unique way for the first time.” – Tobin Lent, VP & Global General Manager of Digital, The Topps Company

Other Digital Entertainment Events

Certainly, Comic-Con is well known among entertainment events throughout the world. But many other types of enthusiasts attend conventions on an annual basis. In addition to boat shows and home/garden expos, avid collectors make up a sizable number of convention patrons. In this regard, Topps, the leader in collectible sports cards and memorabilia, has embraced a virtual convention as well. Using a digicast on its own Twitch channel, Topps offers a variety of digital apps for attending this year’s venue.

Like Comic-Con, Topps is offering panel discussions, watch parties, question-and-answer sessions, and livestreamed content on its platform. But its virtual convention will also allow patrons to view collectibles digitally as well. In addition, Topps will have a number of sports and digital celebrities on hand for specific presentations. Though attendance nor revenues will be the same, Topps looks forward to showcasing its digital interface with its fans. And likewise, they hope to embrace the opportunity to advance these platforms to increase fan engagement in the future.

“Virtual worlds are part of an evolution of human communication. It’s a natural process, and people shouldn’t feel scared about it… In a virtual galaxy, the only limitation is your imagination.” – Mikhail Prokhorov, Russian Billionaire and Founder of Sensorium Corporation

Envisioning the Virtual Convention of Tomorrow

The examples of the virtual convention of today is one where attendance is available for all. Naturally, this has some advantages, but this model is hardly sustainable. Understanding this, some companies are exploring how such entertainment events can attract patrons while also generating revenues. Coolwaters Productions, for example, is hosting InHouse-Con, a Star Trek convention with the cast of “Discovery.” While online attendance is only $4.95 for general admission, packages go up to $425 for upgrades. These upgrades include 20-minute Zoom meetings with panelists, signed memorabilia, and other swag. It’s unclear if such an approach is viable long term however.

Even more innovative is Russian billionaire Mikhail Prokhorov’s company Sensorium Corporation. This company is advancing artificial intelligence and virtual reality as a means to boost virtual entertainment events. Sensorium already owns over a quarter stake in L.A.-based startup Redpill VR. Likewise, it has partnered with Epic Games in order to utilize its 3D creative tools. The hope is that this new imaginative platform will usher in the entertainment events of the future. This not only includes music concerts and festivals but also virtual conventions as well.

The Virtual Convention Does Have Advantages

While most would prefer to attend in-person entertainment events, a virtual convention isn’t all bad. For one, there’s no lines or crowds that one has to maneuver. Likewise, the cost of attending an event is notably less, especially if hotels and travel are involved. Despite this, it’s unlikely that virtual events will replace live ones. But that doesn’t mean they may not secure a sizable portion of the entertainment market. The learning curve is steep, and both producers and patrons are adjusting. As the new entertainment culture adapts, most expect virtual events to appeal to a sizable number of individuals moving forward.

 

COVID-19 has certainly been a challenge! To read more about overcoming challenges and turning obstacles into opportunities, check out Ed Kopko’s PROJECT BOLD LIFE: The Proven Formula to Take on Challenges and Achieve Happiness and Success.

COVID-19 and the Virtual Escape – The Changing Landscape of Virtual Gaming

According to recent statistics, roughly 3.1 billion people enjoy virtual gaming on a regular basis. That’s about 40 percent of the global population with China and the U.S. leading the way. Given the constraints and fears evoked by COVID-19 this year, it’s not surprising that many choose this virtual escape. With social distancing measures in place, and unemployment rising, many are choosing virtual gaming for entertainment and socializing. But at the same time, these evolving developments are having major impacts on the gaming industry itself.

It’s quite evident that some businesses have thrived during the COVID-19 pandemic. The unique circumstances created by lockdowns, social distancing and remote work have fueled tremendous success for some. The same is thus true for the virtual gaming industry. Some companies are experiencing incredible growth as players engage in a virtual escape from this COVID-19 nightmare. But others have not been quite as fortunate. Examining how the gaming landscape is transforming is therefore quite educational in nature. And it will likely help predict where virtual gaming may go in the neat future.

“At a time like this, where people are housebound, being able to escape into the digital world and have these kinds of fun, imaginative experiences with a friend, is very, very relevant.” – Craig Donato, Chief Business Officer, Roblox

The Big Keep Getting Bigger

Industry experts have suggested that the overall virtual gaming industry will grow nearly 10 percent in 2020 alone. Naturally, this boost can be attributed to the pandemic with people being forced to spend more time at home. Therefore, it’s not surprising well-known games have been the most frequently used by many people as a virtual escape. For example, Nintendo’s Animal Crossing: New Horizons has seen an incredible increase in users. It reported a whopping 428% increase in operating revenue during a single quarter as a result. Likewise, Activision’s Call of Duty: Warzone some sizable increases as well. These popular virtual games were the “go-to” when the pandemic struck.

Some kids playing games, wasting their lives away
The lockdowns brought about by COVID-19 have increased the need for a virtual escape.

The lure of these games was not only their immediate entertainment value of the virtual games themselves. The other feature that attracted users was its capacity to engage others in a social way. Unable to see friends and family in-person, this virtual escape was a way to interact with others. In essence, this was not different than using Zoom or Microsoft Team to engage coworkers remotely. It was simply a different way to play with others. Major companies like Take-Two Interactive, Nintendo, and others already established naturally enjoyed rising popularity during the pandemic.

“One of the big trends we’re seeing in player behavior through the pandemic is that video games have become one of the primary ways friends and family have stayed connected.” – Mat Piscatella, NPD Group video game industry analyst

The Woes of the Small Developer

While the larger virtual gaming companies have benefited significantly from COVID-19, smaller companies have not. Cancellation of major developer conferences have caused some of the smaller virtual gaming companies to struggle. A lack of networking opportunities and the chance to showcase their products account for some of this. Without an ability to easily reach their audience in lockdown, startups and independent game developers are limited. Even the capacity to connect with venture capitalists and funding supports have been constrained in this pandemic climate.

Other smaller companies have had different struggles with the pandemic. For example, Jackbox, a small virtual gaming company with 45 employees, wasn’t prepared for the boom. Jackbox typically provides popular party pack games where individuals share a screen but at in-person. However, when lockdowns occurred, remote gaming boomed overnight as users sought a virtual escape from boredom. Unfortunately, this created bandwidth and platform security issues for the company. But despite intermittent downtime and streaming lags, Jackbox was able to recover. Compared to other small virtual gaming companies, Jackbox seems to have weathered the storm well.

“We can certainly anticipate a few big holiday weekends each year and we can prepare infrastructure for that increased traffic. But what we didn’t anticipate was daily traffic that was going to be at that level.” – Mike Bilder, CEO, Jackbox

Pooling Talents for Bold Success

One emerging strategy that looks to be ideal for platforms and developers alike is a collaborative one. Developers have been able to earn income from sites like Fortnite, but others are taking this to a new level. Roblox, which has boomed in recent years, offers developers a 50-50 split. Launched in 2006, Roblox now has over 164 million users. Roughly three-quarters of all kids from 9 to 12 years have also played on the platform. And with over 2 million partner developers, Roblox boasts that 345,000 of them are profitable. Some are even earning more than $500,000 annually at this point in time.

Roblox has been valuated at more than $4 billion at this point in time. It remains a private startup at this point, but its potential looks to be tremendous. The business strategy it is pursuing in the virtual gaming industry is an attractive one. Roblox is able to provide users new forms of a virtual escape releasing more than 20 million new games each year. More importantly, it is creating a marketplace where developers can launch a business or their career. This approach offers a win-win situation that enables even small developers an opportunity to compete.

Post-COVID Predictions in Virtual Gaming

While virtual gaming offered a virtual escape from lockdown boredom, its appeal will likely persist after the pandemic. Mobile apps are becoming more popular, and users increasingly enjoy remote socializing opportunities. While these sites have thrived because of the pandemic, they were already seeing steady increases in popularity. What’s more intriguing is the dynamic between developers, users, and platforms that is evolving. In this regard, COVID-19 has definitely been more of a catalyst for change.

 

COVID-19 has certainly been a challenge! To read more about overcoming challenges and turning obstacles into opportunities, check out Ed Kopko’s PROJECT BOLD LIFE: The Proven Formula to Take on Challenges and Achieve Happiness and Success.

How can we help?