Everyrealm, an a16z-backed infrastructure immersive media company, claims the habits of young users are changing, favoring immersive game-like experiences taking place in virtual worlds over social media. Everyrealm is behind popular virtual-community-driven projects such as The Row and Fantasy Islands and other upcoming social video games with fully-formed digital environments.
What is Immersive Media?
Immersive media refers to interactive, social, video game-like content delivered through virtual worlds. It could be a precedent of a new frontier for social media and video gaming, allowing people to build virtual lives in online environments. It’s the convergence of social media and gaming and could be the future of social interaction online.
The metaverse concept, a vision of interconnected virtual worlds, is also part of immersive media. It is seen as a way to provide more engaging and fulfilling experiences beyond high scores and boss fights, offering socializing, working, and other adventures online.
The report highlights that young audiences spend more leisure time in social video games and virtual worlds than watching television or reading books. It also notes that video games have become popular among younger people because they offer a level of engagement and interactivity that traditional forms of media cannot match. Players can connect with friends, engage with in-game economies, and create their own content.
Gen Z values close relationships and finds connecting with close friends the simplest way to feel happier. As digital natives, they are driving the shift toward visual communication as a critical factor.
Social Media Disrupting Technology
Instagram grabs users for an average of 30 minutes a day, while the average Roblox (NYSE:RBLX) player spends more than 2.5 hours each day in the game. That’s five times more time spent gaming than on social media.
Nearly 90% of Gen Alpha and Gen Z consider themselves gamers or game enthusiasts, with Gen Z gamers spending almost twice as much time with friends in virtual worlds than in real life.
Over half of them claim they can express themselves more easily in virtual worlds. Moreover, roughly half of this younger demographic spends as much as $60 billion annually on games and in-game purchases.
According to the survey, younger people are more likely to find video games to be interactive and exciting than traditional media, which explains why the report predicts the popularity of immersive media to increase even more. People want to be able to create their own virtual lives and engage in online surroundings.
Everyrealm’s CEO, Janine Yorio, says that companies need to prepare for the rise of immersive media by adapting to this trend change if they want to remain relevant.
The report’s findings indicate that immersive media has transformed the digital landscape and disrupted the traditional social media market. It underscores the swift growth of the market, seeing its worth go beyond $1 trillion in annual revenue, encompassing several existing industries, including video gaming, haptics, and virtual reality devices.
According to Statista, the global video game market could be worth $482 billion in 2027, and the virtual goods market, which accounted for almost $61 billion in 2021, is expected to hit $203.6 billion by 2028.
These are bold projections, but if the trends do continue the way they are now, they aren’t entirely unrealistic.
Conclusion: The Future is Immersive
Everyrealm’s latest report suggests immersive media is the new social media and gaming frontier. The younger generation’s habits are changing, and they are spending more time engaging in social video games and virtual worlds than in traditional forms of media.
The rise of immersive media is set to continue to disrupt the traditional social media market, and businesses and marketers must adapt to this trend change to remain relevant.
Another finding also suggests immersive media’s popularity could grow even more, with estimates for 2027 placing its worth at nearly $482 billion in annual revenue. This new media type could transform the digital landscape as individuals seek to build virtual lives and participate in online environments.
That said, here are the top metaverse-related stocks on TipRanks to consider that may benefit from the rise of immersive media.
