VR Big Data Report 2016

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01 First Year of the VR Era: Five Predictions 02 04 Distribution: From Local to Online 33 02 Consumption: The Ice-Breaking VR Market 06 05 Scenario: Digital Floods Brought by the VR Living 40

03 Production: Soon Arisen User Experience 14 06 Future: Next-Generation Communication Platform 44 01/02

Report Data Source

To display the developing trend of the VR era more accurately, the report also releases various data information, which mainly comes from the following two sources:

• iLab exclusive survey: The iLab Spider searches open

information on the Internet for analysis. 01 • Third-party open data: Key conclusions from this report First Year of are extracted and analyzed based on third-party data

from MPEG, Storm Mirror, iiMedia, and so on. the VR Era Five Predictions

*Crawler data collected till December 30, 2016 VR Big Data Report 03/04 2016

First Year of the VR Era: Key Technologies of VR Introduction to the Public

The application and products of virtual reality (VR) came out a long time ago in the The development of key VR technologies focuses on the performance of virtual 1990s. During the 20 years of technical development, the application mainly lay in environment, and interaction between that and users. specific fields like industrial simulation, aviation, and military medical treatment. The virtual environment performance depends on four media technologies including 360°video, free-viewpoint video, computer graphics, and light field. As some technical problems are solved and low-cost solutions have appeared, the year of 2016 is regarded as the first year of the VR era. Since then, VR has been officially 360°video: The panoramic shooting is used for real recording from the user viewpoint introduced to public consumers and integrated into people's daily lives. in the center. 360°video technology is also the earliest to become commercially available online.

Free-viewpoint video: The free-dimensional (freeD) shooting is used together with modeling calculation for a changeable viewpoint of the user which is composed of real viewpoints and virtual viewpoints. This technology currently has experimental products but is not commercially available in large scale.

Computer graphics: Virtual entities are rendered by modeling and computing. The large calculation volume makes the technology applicable locally mainly.

Light field: The technology records the light intensity and angle information, resulting in a large calculation volume. Some experimental products are currently available. The evolution of media technologies constantly enhances the authenticity of VR.

The interaction between users and the

virtual environment includes key 360°video technologies such as locating, and Model Free- motion capturing. reconstruction viewpoint video The locating technology integrates user locations and the virtual environment. VR key Motion The motion capturing technology builds technologies Computer capturing graphics a connection between users and the virtual environment.

The development of interaction Light field technology pushes VR from weak Locating technology interaction to strong interaction. VR Big Data Report 05/06 2016

Five Predictions

1. Short-term: The sensory experience improves as media technologies evolve. The single-eye resolution is raised to 2K, and the full-view resolution is raised to 8K. The audio has distance, direction, and spatiality.

2. Mid-term: The network capability evolution enables more VR applications to go online.

3. Mid-term: The development of interaction technology pushes the VR to evolve from the "look only" weak interaction to strong interaction.

4. Mid- and long-term: The iteration of media, interaction, and network technologies constantly increases the user base, replacing Solo VR with Social VR, and making VR the real next-generation communication platform. 02

5. Further future: The integration of VR and AR, and of virtual world and real world, fulfills the human life revolution. Consumption: The Ice-Breaking Experience enhancement VR Market

From fully-virtual From local to mixed reality to online

From weak From Solo interaction to to Social strong interaction VR Big Data Report 07/08 2016

User Base: The Fast Propagation of VR Metropolises: VR Consumption Pioneers

709% 49%

Digital news: The average weekly number of reports about VR in 2016 exceeds 1,000, The on-demand playing volume in tier-1 Chinese cities such as Beijing, which is 487% more than that of 2015. Shanghai, Guangzhou, and Shenzhen takes up a great proportion of the total volume in China. Other major cities and coastal cities are also Social network: The number of WeChat official accounts about VR has reached 1109 ranked at the top regarding the VR video on-demand playing volume. with over 100,000 published articles.

Search engine: The number of searches of the keyword "VR" on Google Trend/Baidu Digital media users in developed cities are more open to new concepts, are exposed Search drastically increased by 709% than that of 2015. to richer information, and have higher purchasing power, making the popularization of VR easier. Google search popularity Change trend of the search popularity of "VR" on Google 100

40 Top 10 regions for VR video user distribution 20 Percentage in the top 10 0 14% 2004 2006 2009 2011 2014 2016 12% 10% 8%

Baidu index Search index change of "VR" on Baidu 6% 40000 4% 35000 30000 2% 25000 0% 20000

15000 Beijing Shanghai 10000 Chongqing 5000 Jiangsu/Suzhou 0 Sichuan/Chengdu Zhejiang/Hangzhou Guangdong/Foshan August 2014 July 2015 January 2016 Guangdong/Shenzhen Guangdong/Dongguan Guangdong/Guangzhou Source iLab VR Big Data Report 09/10 2016

Curiosity: Biggest Motive for Mobility and Comfort: Expectations for Purchasing Terminals

75.80% of users use VR devices to meet their curiosity. 60.61%

But purchases out of curiosity are not necessities. Experience is the key to seize Survey results from MPEG show that the wireless HMD is the most desired type of customers. terminals by users. 60.61% of users choose wireless HMDs as their first choice, whereas, only 18.90% of users choose wired HMDs as their first choice. Percentages of users who make purchases for the experience of unknown contexts and new technology are 45.30% and 40.70% respectively. In another third-party survey, the main factors that affect users' purchases of VR hardware include non-dizziness (70%), diversity of available contents(66%), and degree of immersion (65%). (Source: Research Report on VR User Behavior in China, by Storm Mirror)

Motives of users for using VR devices Wireless HMD 60.61%

Wired HMD 18.90%

TV STB 8.66% 75.80% Curiosity PC browser 8.59%

Tablet 6.19% Source: MPEG

Unknown contexts 45.30% No dizziness 70% Diverse contents 66% Optimal immersion 65% Comfortable wear 57% Good visual effects 55% Spatial mobility 40% New technology 40.70% Reasonable pricing 39% Easy operation 38% Well-known brand 24% Source: iiMedia Research Nice appearance Source: Research Report on VR User Behavior in China 9% Report on VR User Behavior in China, 2016 H1 VR Big Data Report 11/12 2016

Immersive Gaming+360°Video: Weak Loyalty: Low Daily Usage Time First Choice of Content Consumption

Immersion is the most significant and straightforward feature of VR compared to 64.10% < 30 minutes traditional media. Survey results from the National Advertisement Research Institute and other institutes Survey results from MPEG show that 45.07% of consumers prefer the immersive show that heavy VR users spend less than 30 minutes daily using VR in 2016 H1. VR gaming. According to MPEG, the discomfort and low content quality of VR terminals cause Other scenarios such as 360°live (42.96%), and recorded 360°sports and concerts 42.68% of users to expect only 2 to 10 minutes of VR contents. Users who expect VR (30.99%) are also preferred by consumers. contents of over 60 minutes only take up 16.86%.

Using frequency of VR heavy users 40.0% 35.7% 35.0% Gaming-like content 45.07% 21% 30.0% 27.5% Live broadcast including sports and broadcast 42.96% 25.0% Use almost every day Documentaries produced specifically for VR 38.03% 7% Use frequently 20.0% 14.5% Use occasionally 15.0% 13.9% Education and training 37.32% 72% 10.0% 8.4% Recorded sports and concerts 30.99% 5.0%

Communication and telepresence applications 28.17% 0.0% Definition of heavy VR users: users who have within 5 minutes6 to 15 minutes16 to 30 minutes 31 to 60 minutesOver 60 minutes purchased various VR devices in the past year Full movies 16.9% Source: Research Report on VR User Behavior in China Supporting highlights for events/movies/shows 15.49%

Commercials/Advertisement content 12.68%

User-generated content 11.97% 2 to 10 minutes 42.68% News content 10.56% 10 to 30 minutes 27.2%

Source: MPEG < 2 minutes 18.02%

60 to 180 minutes 10.08%

24/7 linearly scheduled programs 6.78% Source：MPEG VR Big Data Report 13/14 2016

Discomfort and Storytelling: Barriers of VR Popularization

52.11%

The top 3 factors which users regard as the biggest barriers of VR are the discomfort of HMDs (52.11%), psycho-physiological discomfort such as dizziness (47.89%), and lack of experience in VR storytelling (45.77%).

Discomfort/Reluctance to wear HMDs 52.11%

Motion sickness and other psycho-physiological factors 47.89% Lack of experience in VR storytelling 45.77% 03 Lack of content creation tools 39.44%

Fragmented technology space 35.92% Production: The Lack of end devices 26.76% Budding Lack of standards for compression 24.65% Experience Quality Lack of commercial business case 23.24%

Lack of economically viable distribution means 23.24%

Lack of interest from consumers or lack of awareness 19.01% Source: MPEG VR Big Data Report 15/16 2016

A. Terminal: The Unfulfilled Key B. Content: VR 360 Videos Take Up the Parameters Largest Proportion of VR Contents

Either VR headsets that rely on host drivers (Oculus Rift CV1, HTC Vive, and 99.37% PlayStation VR) or standalone headsets that integrate screens with calculation units (Pico Neo, and DeePoon VR), or glasses that require mobile phones to be put inside The number of gaming apps on mainstream VR application distribution platforms the box (Samsung Gear, and Cardboard), have the following parameter restrictions on exceeds other app types. VR 360 Videos are in a dominant position with a 99.37% user experience: proportion in VR content types.

• Single-eye resolution: ≤ 1K

• FOV: ≤ 110°

• Full-view resolution: ≤ 4K Proportions of content types 99.37% The less-than-20-millisecond motion-to-photon (MTP) latency has become the standard 100% specification of VR terminals. 90% The dizziness caused by the local MTP of mainstream VR terminals is no longer a bottleneck for user experience, but low-quality content on low-cost VR glasses may still 80% cause such discomfort. 70%

60% Maximum FOV Single-eye Device Equivalent resolution (Vertical & horizontal) resolution 50% Proportions of content Oculus Rift CV1 2160x1200 H: 96°V: 107° 1080x1200 40% types HTC Vive 2160x1200 H: 100°V: 113° 1080x1200

PlayStation® VR 1920x1080 100° 960x1080 30%

Pico Neo 2400x1080 102° 1200x1080 20% DeePoon M2 2560x1440 96° 1280x1440

Samsung Gear VR 2560x1440 101° 1280x1440 10% 0.58% 0.05% Storm Mirror 5 2560x1440 (highest reachable) 96° 1280x1440 0% Cardboard 2560x1440 (highest reachable) 110° 1280x1440 Gaming Software 360 °video Source：iLab VR Big Data Report 17/18 2016

B. Application: High-end Apps C. VR 360 Video: Lack of Long Videos Tend to Require Payments? For Experience

Oculus Rift CV1 and HTC Vive aim at supreme experience, which have 71.92% and 69.30% of VR 360 videos are short videos (< 4 minutes), and less than 1% of VR 73.13% paid apps respectively. 360 videos are longer than 20 minutes. How to tell a story in the VR perspective is the • 61.7% of paid apps on Oculus Rift CV1 are within the price range of RMB 10–40. challenge for 360°VR content creators.

• Apps on HTC Vive that costs less than RMB10 take up 50.2% of all paid apps. This challenge greatly affects the production of long VR 360 videos.

Storm Mirror aims at low- and mid-end experience, which has up to 98.48% free apps.

100.00% 98.48%

80.00% 71.92% 73.13% 3.78% 0.73% 60.00% Free 40.00% Paid 28.08% 26.87% 20.00% < 4 minutes 1.52% 26.19% 0.00% 4–10 minutes Oculus Rift CV1 HTC Vive Storm Mirror 10–20 minutes Source: iLab 69.30% > 20 minutes

60.0%

50.0%

40.0% Oculus Rift CV1 Source：iLab 30.0% HTC Vive Storm Mirror 20.0%

10.0%

0.0% RMB 1–10 10–20 20–30 30–40 40–50 50–60 60–80 80–100 Over 100

Source: iLab VR Big Data Report 19/20 2016

C. VR 360 Video on Demand: C. VR 360 Video on Demand: Coexistence of Full-View 1080p, 2K, Rough Views and 4K Resolutions 4K VR = 240p TV = 10 PPD

What determines the VR visual experience is the image quality within the FOV, which is defined by pixel-per-degree (PPD). A full-view 4K VR 360 video has only 10 PPD, 96.00% 68.52% equivalent to 240p on traditional TVs, resulting in poor visual experience. Storm Codec and YouTube are platforms with the highest number of 4K VR 360 videos Large FOVs on immersive terminals require higher full-view resolutions. A full-view in and outside China respectively. 4K resolution is far from video quality satisfaction. Full-view 8K or higher resolutions are essential for VR contents. Taking a 90-degree FOV as an example: Platforms in China:

• The percentage of 4K videos reaches 96% on Storm Mirror, which is one of the major professional VR platforms. • Full-view 8K: 1920x1920 single-eye resolution, PPD = 22

• Over half of videos (55.48%) on Youku VR channels are in 4K. • Full-view 12K: 2880x2880 single-eye resolution, PPD = 32

• LeTV mainly provides 1080p videos.

Platforms outside China: 3840x1920 panoramic picture 960x960 panoramic picture • 68.52% of YouTube VR videos are in 4K. 3840 960 • Facebook mainly provides 2K VR videos (90.7%).

1920 960 ICP 720p 1080p 2K 4K

LeTV VR 0.00% 99.85% 0.15% 0.00%

Storm VR 0.00% 0.00% 4.00% 96.00% Single-eye Full-view 8K resolution resolution Youku VR 9.97% 20.60% 13.95% 55.48%

YouTube 8.33% 13.43% 9.72% 68.52%

Facebook VR 0.85% 7.25% 90.70% 1.20% VR Big Data Report 21/22 2016

C. VR 360 Video on Demand: C. VR 360 Video on Demand: Less Than 30 fps Is the Mainstream, Immature Popularization of 3D 50/60 fps Is Rare < 12.00%

50/60 fps < 7.00% 3D 360°videos with binocular stereo vision on these platforms take up only less than 12%. 2D videos without binocular stereo vision are the mainstream. VR 360 videos on platforms generally have a frame rate of lower than 30 fps.

• The proportion of videos with a 30 fps frame rate on YouTube is 75.70%. 100% 98.03% 97.45% • Platforms in China still have a large proportion of videos with a lower than 30 fps frame rate. The percentage of VR videos at 15 fps on Youku reaches 49.1%. 90% 88.20% Some platforms have 50/60 fps videos, but the proportion is below 7%. 80%

70% ICP 15 fps 18 fps 24 fps 25 fps 30 fps 31 fps 50 fps 60 fps

60% LeTV VR 1.20% 0.40% 9.10% 40.50% 44.20% 1.70% 1.20% 1.70%

Storm VR 0% 0% 9.80% 35.60% 52.60% 0% 1% 1% 50% 3D Panoramic Non-3D panoramic Youku VR 49.10% 0% 2.70% 20.00% 28.20% 0% 0% 0% 40%

YouTube 1.40% 0% 1.40% 14.90% 75.70% 0% 1.10% 5.50% 30% Facebook 0.90% 0% 6.70% 13.50% 72.30% 0% 4.70% 2.00% 20% 11.80% 10% 1.97% 2.55% 0% Oculus Vrideo YouTube Source: iLab 2016 VR 大数据报 23/ 24 告

C. VR 360 Video on Demand: C. VR 360 Video on Demand: H.264 Encoding Format Is Still the First Projection Format to Be Evolved Choice in the Industry ERP projection is a traditional format for projecting VR 360 videos, but images are subject to distortion and the compression efficiency reaches a bottleneck. All platforms choose H.264 as the coding format for VR 360 videos because of high HEVC patent fees. PSP projection format is the new trend in the industry which has low distortion and high compression efficiency. Among 9 VR 360 video platforms analyzed in the report: YouTube also provides videos in the Google VP9 coding format. • Six platforms provide only the ERP projection format.

ICP File Type Coding Format • One platform provides both ERP and PSP projection formats. • Two platforms provide only the PSP projection format. YouTube MP4, WebM H.264, VP9 Traditional OTT platforms such as YouTube tend to choose the ERP projection format.

Facebook MP4 H.264 Emerging VR platforms such as Facebook and Storm VR evolve more rapidly and tend to choose the Cube projection format. Discovery VR TS H.264 Facebook also develops the Octahedron projection format with the highest efficiency in Vrideo MOV, WebM, OGG H.264, VP8, Theora compression, which can improve the encoding compression efficiency by 80%. This format has been applied in some Gear videos already. Littlstar VR Cinema MP4 H.264

Within MP4 H.264 ICP Projection Format YouTube ERP ERP Facebook (web) Cube 100% Youku (VR) FLV, MP4 H.264 Facebook (Oculus) Cube Facebook (Gear) Octahedron LeTV VR MP4 H.264 Littlstar ERP Discovery ERP Cube 75% 3D Bobo MP4 H.264 Within ERP Vrideo ERP Youku (web) ERP Storm VR MP4 H.264 Youku (VR) Cube Cube LeTV VR ERP 20% Storm VR Cube VR Big Data Report 25/ 26 2016

C. VR 360 Video On Demand: D. VR Live Broadcast: Mainstream Bit Rates Are Higher Outside China Scenarios Are Big Events, Reality Than in China Shows and Sport Games

12 Mbit/s VS 6 Mbit/s

Outside China, Vrideo and YouTube provide 4K videos at 12–14 Mbit/s. The bit rates of Currently, VR live broadcast has debuted in some big events and sport games and it all 4K videos on platforms in China are lower than 6 Mbit/s. will become a trend in the future. The Olympic Games, NBA, and multiple sports games such as European Cup have tried VR live. The bit rate of 4K videos on Storm Mirror, which is a professional VR platform, is only 4 Mbit/s and lower than that of 2K videos in the same projection format on Facebook. In October 2015, CNN cooperated with NextVR to VR live broadcast the Democratic TV debate for the first time.

In November 2016, the US election voting was VR live broadcast in social applications 16000 by AltspaceVR. Platforms in China such as Xiaoxiong VR and Xiaohuaxiu VR have already provided various channels for live VR reality show. 14000

12000

10000 720p 1080p 8000 2K 4K 6000

4000

2000

LeTV Storm VR Youku VR Vrideo YouTube Facebook VR Big Data Report 27/ 28 2016

D. VR Live Broadcast: D. VR Live Broadcast: Image of Poor Quality Obvious Video Delay

< 5 Mbit/s 50s

Most VR live broadcast platforms provide videos at resolutions of full-view 2K or lower. Professional VR live broadcast platforms tend to use real-time streaming media The average bit rate is generally below 5 Mbit/s. protocols such as RTMP to implement VR live broadcast, keeping the broadcast delay between 3 to 50 seconds. Video quality can be greatly improved. YouTube began to support full-view 4K VR live broadcast at 60 fps on December 1. When the servers are running under a heavy load or poor network conditions, real-time video experience is poor. Meanwhile, full-view 4K live broadcast has been applied to influential big events, such as Faye Wang's concert broadcast by Whaley, Traditional OTT VOD platforms tend to use DASH for VR live, and ensure the smooth live broadcast using adaptive bit rates. with VR live stream at 25 fps and 7.8 Mbit/s.

As the most influential platform in the VR live broadcast field, NextVR provides 180- degree semi-panoramic live broadcast only to reduce production costs. Transport Adaptive Definition Live Broad- ICP However NextVR will definitely support 360° panoramic VR live in the future. Protocol Bit Rate Selection cast Delay

Xiaoxiong VR RTMP No No 3~50s Average Bit Media Frame Projection Rate Coding Platform Stream Resolution Rate Format (Maximum Format Protocol (fps) Resolution) Xiaohuaxiu VR HTTP flv No No 3~50s live broadcast RTMP ERP 2880*1440 3500 kbit/s 30 H.264 Xiaoxiong VR RTMP ERP 3072*1538 4125 kbit/s 30 H.264 YouTube (PC) Dash Yes Yes 20~30s

Xiaohuaxiu HTTP flv ERP 2880*1440 2047 kbit/s 25 H.264 VR YouTube Dash Yes Yes 20~30s (mobile) YouTube Dash ERP 2560*1440 3000 kbit/s 30 H.264

ERP NextVR NextVR \ 1024*512 \ 30 H.264 \ \ \ \ (180°) (mobile) VR Big Data Report 29/ 30 2016

D. VR Game: Pursuit of Visual Impact D. VR Game: Improved Interaction Mode Brings Real immersion Experience

60% 52.45%

Emergence (2013): Early VR games are constructed upon simple scenarios where 52.45% of VR games use positioning and motion controllers for interaction, improving the players can roam around; for example, on a roller coaster. However, compared with immersion experience. traditional games, such VR games still bring basic immersion experience and visual impact.

Exploration (2014 to 2015): With combination of traditional games and VR sensual effects, immersion experience and visual impact are further strengthened.

Explosion (2016): The video quality, immersion experience, and story integrity of VR games are greatly improved. Action/Adventure games with exciting sensual experience accounts for 60% of all games on the three major platforms. 23.19% Keyboard and mouse

52.45% Handle

70% Positioning and motion 63.9% 24.36% 61.6% 62.4% controller 60%

50%

40% Oculus Rift CV1 29.0%30.7% 30% 25.3% HTC Vive Storm Mirror 20% Source：iLab 12.4% 10% 7.1% 7.7%

0% Action/Adventu Strategy Leisure games re games games Source: iLab VR Big Data Report 31/ 32 2016

D. VR Games: Single Player Mode D. VR Games: Lack of Online Becomes the Mainstream Experience

89.2% 81.9%

On mainstream VR game platforms, the number of single-player games takes up 89.2%. On VR game platforms, the number of local games takes up 81.9%, while the number of online games less than 20%.

Scenarios in multi-player games are far more complex so that players can better immerse into the games. With the development of technologies, multi-player game will grow exponentially.

10.8% 18.1%

Single-player games Single-player games Multi-player games Multi-player games

89.2% 81.9%

Source: iLab Source: iLab VR Big Data Report 33/ 34 2016

Predictions: Top 3 Internet Channels

75.35%

According to the MPEG VR survey report: Internet streaming media, Internet download, and cloud rendering are the top 3 channels for distributing commercial VR services in the industry. The percentage of companies that choose Internet streaming media is 75.35%.

Network channels connect production closely with consumption, improving the efficiency of delivering VR contents to consumers and strengthening users' sense of participation during online interaction. Meanwhile, cloud rendering lowers the performance requirements, reduces the costs, and effectively improves the mobility of terminals.

Network capability evolution is the prerequisite for VR applications to transit from local 04 to online. Distribution: From Local to Adapt Streaming over the…

Online Download from Internet 44.37%

Cloud-renderedstreaming 33.80%

Managed IP streaming 22.54%

Packaged Media 19.01%

Conversational Low Latency… 17.61%

Traditional broadcasting 8.45% Source: MPEG VR Big Data Report 35/ 36 2016

Current Situation of Distribution: Network Requirement: VR 360 Video Streaming+Download On-Demand

The main distribution method of VR 360 Video is online streaming, which accounts 46.1 Mbit/s for more than 99% of current VR contents. The minimum bandwidth required for smooth VR video playback is 2.98 times the The main distribution method of games and other applications is download. average bit rate.

Drag the video slider to a random point, the bandwidth required for loading the video within 1 second is 4 times the average bit rate.

The bandwidths supporting 2K and 4K videos are 25.8 M bit/s and 46.1 M bit/s respectively.

Mbit/s 50 46.1 0.63% 45

30 25.8 Avg Bitrate 25 Download 21.9 Smooth Playback 20 Loading Time<1s Streaming 13.92 15 10.8 10 8.8 99.37% 6.5 5 5.07 3.8 5 2.2 2.16 1.31.4 1.8 1.17 0.3 0.61 0 Source: iLab 360p 480p 720p 1080p 1440p 4k Source: iLab VR Big Data Report 37/ 38 2016

Network Requirements: Network Requirements: Applications VR Live Broadcast

The minimum bandwidth supporting smooth VR live broadcast without freezing is 1.5 266.7 Mbit/s times the average bit rate. Currently, the sizes of applications in mobile VR app stores range from 20 MB to 500 MB, and that on PCs range from 200 MB to 20 GB.

Mbit/s To download 500 MB within 1 minute on a mobile device, the minimum bandwidth 7.0 must be 66.7 Mbit/s.

To download 20 GB within 10 minutes on a PC, the minimum bandwidth must be 6.2 266.7 Mbit/s. 6.0 The percentage of VR application with an update cycle that is less than 30 days reaches 91.67%. 5.0 4.5 Distribution of App 4.1 Bandwidth Requirement (Mbit/s) 4.0 File Size Update Cycle (MB) 1min 5min 10min 30min 8.33% Average 3.1 20 2.7 0.5 0.3 0.1 3.0 5.00% 3.0 bit rate 50 6.7 1.3 0.7 0.2 Required 25.00% bandwidth 100 13.3 2.7 1.3 0.4 2.0 16.67% 2.0 300 40.0 8.0 4.0 1.3 16.67%

500 66.7 13.3 6.7 2.2 8.33% 1.0 1000 133.3 26.7 13.3 4.4 1–5 days 12–20 days

10000 1333.3 266.7 133.3 44.4 5–10 days 20–30 days 10–15 days over 30 days 20000 2666.7 533.3 266.7 88.9 0.0 Source：iLab Xiaoxiong VR Xiaohuaxiu VR YouTube (3072x1538 30 fps) (2880x1440 25 fps) (1920x1080 30 fps)

Source: iLab 2016 VR Big Data 39/ 40 Report

Evolution Roadmap: Experience and Network Requirements of the VR 360 Video

Evolution roadmap of VR 360 video experience and information transport amount within spherical full view Pre-VR Entry-Level Advanced Standard Ultimate VR (Current) VR VR Continuous experience < 20 minutes < 20 minutes 20 to 60 minutes > 60 minutes duration Estimated time Within 2 years Within 2 years 3 to 5 years 5 to 10 years Full-view 8K 2D Full-view 12K 2D Full-view 4K 2D video video Full-view 24K 2D video video (full-frame (full-frame (full-frame resolution: Video resolution (full-frame resolution: resolution: resolution: 23040x11520) 3840x1920) 7680x3840) 11520x5760) 960x960 (with 1920x1920 3840 * 3840 (with 7680 * 7680 (with glasses and 90° (with glasses specialized HMD specialized HMD and Single-eye resolution FOV) and 90° FOV) and 120° FOV) 120° FOV) PPD (Note 1) 11 21 32 64 Equivalent traditional TV 240p SD HD 4K 05 screen resolution Color depth (bit) 8 8 10 (HDR) 12 Compression ratio 165:1 165:1 215: 1 350:1 (3D) (Note 2) Scenario: Digital Frame rate 30 30 60 120 Typical video bit rate 16M 64M 279M 3.29G In this phase, FOV Floods Brought by transmission has Typical network become the bandwidth requirements 25 Mbit/s 100 Mbit/s 418 Mbit/s mainstream: the VR Living (Note 3) 1 Gbit/s for smooth play 2.35 Gbit/s for real-time interaction Typical requirement for network RTT 40 ms 30 ms 20 ms 10 ms (Note 4) Typical requirement for network packet loss 1.4E-4 1.5E-5 1.9E-6 5.5E-8 rates (Note 4)

Note 1: PPD is short for pixel per degree. The retina of common human beings can reach the resolution of 60 PPDs. Note 2: The compression is calculated based on empirical value of H.264, HEVC and H.266. The contents of left and right 3D eyes are highly related; therefore, compression at a large proportion can be completed without much quality distortion. Note 3: For typical network bandwidths capable of smooth play, the value of the video on demand (VOD) is estimated by 1.5 times of the bit rate. Note 4: With a specific target latency value, the packet loss probability is calculated using the TCP throughput formula based on the actual network bandwidth. 2016 VR Big Data 41/ 42 Report

VR Shopping: Journey of Spending VR News: Present on the Scene

30 times 30 times

At "Double 11" shopping festival in 2016, Taobao launched a VR shopping platform Traditional news media starts to present news contents in the form of VR. called Buy+, taking you to Australia within 10s, where you started the journey of Currently, VR news is generally presented in forms of 360° panoramic video and CG spending. scenario, allowing users to be present at the event in the first perspective. Compared with "service purchase" in offline shops and "convenient shopping" in A traditional SD news video consumes about 5.5 MB within 80s based on empirical test online shops, VR shopping focuses on "purchase with fun".Taking shopping in offline results. However, a VR panoramic news video consumes about 150 MB within the shops as an example, Shopping on mobile phones consumes traffic about 3 to 4 MB, same duration; the traffic consumption is nearly 30 times that consumed by a traditional while VR shopping about 94 to 120MB; The traffic consumption is increased by more news video. than 30 times. Traffic Wave Diagram of Buy+ Shopping kbit/s 100000 Media Presentation Mode Contents

80000 Films and promotion videos; 60000 The New York Times November 2015: NYT VR APP for example, the short video The Displaced 40000 Provides VR panoramic videos on 20000 Education videos and BBC YouTube, Facebook, and other documentaries

0 platforms.

1 7 3 9 5 1 7 3 9 5 1 7 3 9 5 1 7

3 9 5 1 7 3 9 5 1 7 3 9 5 1 7 3 9 5 1 7 3 9 5 1

1 1 2 3 3 4 4 5 6 6 7 7 8 9 9

10 10 11 12 12 13 13 14 15 15 16 16 17 18 18 19 19 20 21 21 22 22 23 24 Welcome Selecting Transmitting Shopping Welcome Selecting a Transmitting Shopping store ABC News 360° panoramic videos ABC news VR and short videos scenario a store a video scenario scenario a video scenario Shopping mall 1 Shopping mall 2 Documentaries and Source: iLab 360°panoramic videos and live The Associated Press entertainment news; for broadcast kbit/s Traffic wave diagram of common Taobao shopping example, The Suit Life 8000 USA Today 360° panoramic videos Harvest of Change 7000 6000 VRT Nieuws 360° panoramic live broadcast News reports 5000 NHK 360° panoramic videos Election of Myanmar President 4000 CG scenarios; for example, 3000 NetEase News 360° CG scenarios Chernobly 2000 1000 Documentaries and news reports; for example, the 0 Caixin Media 360° panoramic videos 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 documentary Kindergarten in a Tmall Home Home page for Home page of a Purchase Purchase Mountain Village Page female clothing flagship store page Page Source: iLab 2016 VR Big Data 43/ 44 Report

VR Exploration: Travel Around the World at Home

70 times

Google launched a Google Earth VR application in November 2016, presenting the traditional Google Earth in the form of VR. Therefore, users can travel around the virtual Earth sitting comfortably at home.

Compared with the traditional Google Earth, the Earth in the form of VR provides high- quality 3D geographic maps and lifelike CG scenarios.

Based on empirical test results, traffic consumed by the VR Google Earth for browsing the map is 15 times that by the Earth in common version. In addition, browsing lifelike VR CG scenarios consumes 70 times the traffic consumed by common 3D maps. 06 Kbit/s Future: Next- 7000 Google Earth VR 3D map

6000 Generation Google Earth common 3D map 5000 Communication 4000

3000 Platform

2000

1000

2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8

00 11 22 33 44 55 66 77 88 99 10

1 1 1 1 1 1 1 1 1 1 2 Source: iLab 2016 VR Big Data 45/ 46 Report

Industry Roadmap: Widespread VR Piloting: Broadcast TV and Commercial Use of VR in 2020 Terminal Customization

The work plan and vision of MPEG-I In the first year of the VR era, carriers play a leading role in delivering services and enter this field. Phase1: Support commercial use of 3 DoF VR technology (360 Video), to implement comprehensive and mainstream commercial objectives in 2020; Broadcast TV:

Phase 2: Explore 6 DoF VR technology (such as light field and 3D Graphics). • BT Sports cooperated with LiveLike in providing VR 360 live videos about English Premier League football games at four experience shops in London.

Degrees of Freedom • Since October 2016, Korea Telecom (KT) provided VR 360 live videos about TV programs such as Infinity Challenge, Shopaholic Louis, and K-POP Super concert.

Phase 1a Phase 1b Phase 2 Terminal customization: France Telecom Orange launched customized terminal VR1 and a mapping VR 360 • Goal: Developing the first • Goal: Enabling commercial • Goal: Supporting 6 Dof VR technology. set of VR standards in time. use in 2020. Video application on October 20, 2016, which will be released in markets in France, • Supporting 6 Dof VR videos, • Projection and coding of the • Extending and optimizing Spain, Belgium, Poland, and Luxembourg. HEVC-based 360°video the objectives in Phase 1a like Light Field. • MPEG-H-based 3D Audio • Adding new contents and • Audio also supports 6 Dof VR technology. • Streaming transmission of making up the defects, such • Including 3D Graphics. the 360°video as optimizing the projection • The format and framework technology and further of the 360°video compressing the MTP. described by OMAF • Next Gen. Video Coding • Having certain definition and measurement on quality.

2017 end/early 2018 2020 2022

2016/2017: 2017/2018: 2016/2017: Commercial Trials Initial Commercial Launch Mainstream

Phase 1 2016 VR Big Data 47/ 48 Report

Social VR: Next-Generation Future Direction of the Industry: Communication Platform 8K higher + Spatial Audio + Social

100 times Social VR is a brand-new concept, seamlessly connecting various VR applications Social VR is a VR concept for multiple application scenarios. Social networking makes scenarios and integrating real life into the virtual world. VR a way of communication and the next-generation communication platform. If it becomes the next-generation communication platform, future Social VR products should have the following features: Avatar and Share are two core elements of Social VR. The evolution of Social VR is focused on the continuous development of Avatar and Share. • 8K and higher full-view resolution

The relationship, defined by traditional digital media services (for example, OTT video • 2K resolution and auxiliary displays for a single eye services), between the increasing Social VR network bandwidth requirements and the • Spatial audio that can create sound effect based on the Avatar's distance and number of users will be no longer linear. Traffic consumption of typical Social VR direction applications is nearly 100 times that of traditional social applications. • Avatar can be incorporated into the virtual environment in 360° videos. It implements Avatar the live experience of shared scenery, ball games and live concerts. Leading Fidelity FackbookPrototype high Altspace companies in the industry must have visionary foresight to achieve this objective and Recroom Surreal VR push the whole industry toward the VR era. medium vTime Oculus Social Beta Vive platform Share low Oculus platform information State status share Environment share Experience share richness

Traditional online application: The relationship Social application: The relationship between the traffic between the traffic requirements and the number requirements and the change of user quantity is nonlinear. of users is linear. Socical VR Server1 Server n Server Server

Stream Stream Stream Stream Stream 21 Stream Stream 2n 2n+1 Stream 1 n N+1 11 1n+1

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Source：iLab