Here’s Why Twitter Might Be Building Its Virtual Reality Team
Reports suggest that Twitter (NYSE:TWTR) has hired AngelHack founder Gregory Gopman to work on its Virtual Reality (VR) initiative. In June, the company had hired former Apple designer Alessandro Sabatelli to head up its efforts on virtual and augmented reality. As the company builds its VR team, Twitter is likely to add 360 degree video integration and 360 degree video live streaming to its products in future. While speculation around Twitter’s likely acquirer is high, the company cannot afford to lag behind in the next wave of initiatives in the live streaming space. While Facebook is working aggressively on VR initiatives for social media, Twitter is looking to use this as a tool to enhance the viewing experience of its streaming platform Periscope. We believe investment in virtual reality can improve user engagement on Twitter as viewers use this platform for a social experience of live events.
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Virtual Reality Can Engage Users Better In Live Streaming
As Twitter positions itself as news and live streaming platform (for sports and events), using VR technology for live streaming can enhance user experience and engage users better. Twitter’s Periscope has more than 2 million daily active users and there were 200 million broadcasts on this platform to March 2016. With high quality video content using virtual reality, Twitter can look at improving this engagement. The company has already entered into a deal with Samsung Electronics to broadcast the NBA (National Basketball Association) Finals with a 360-degree capability. Recently the company rolled out a new capability for Periscope called Periscope Producer which lets brands, media organizations and other creators broadcast professionally produced, high quality live video produced through external cameras including virtual reality headsets. As Periscope looks to become the distributor of high quality video content, supporting VR is critical for engaging users on this platform.
According to our estimates, the number of timeline views per U.S. Monthly Active User on Twitter will increase gradually from 225,000 in 2016 to nearly 240,000 by the end of our forecast period.
We believe product changes, a rich media experience and live events, news and shows will be the key drivers to increase interaction on Twitter and improve user engagement. The company experiences better engagement during important events and a VR-based Periscope platform can increase this engagement further, driving revenues for Twitter.
As Twitter struggles to grow and engage users, an early start in newer technologies is critical for its future growth. With Facebook already investing heavily in VR content and working towards creating a social VR experience, Twitter’s efforts to bring VR to its live streaming platform will be critical in driving user growth in the long term.
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