Apple has confirmed its purchase of NextVR, a startup out of Newport Beach that provides on-demand virtual reality content, as reported by Bloomberg. What that means for either company or the industry as a whole remains to be seen.
Founded in 2009, NextVR is best known for streaming sports, concerts and other live events in virtual reality, placing viewers right in the middle of the action as if they have a front row seat. However, in light of this acquisition, the company has shut down its website, leaving behind a brief message stating it is “heading in a new direction” and thanking its supporters.
Although 9to5Mac reported in April that Apple was in talks to buy NextVR for $100 million, neither party has disclosed the terms of the deal or any future plans.
This purchase comes at an interesting time for both NextVR and the virtual reality industry more broadly.
According to 9to5Mac, the company failed to secure its Series C funding last year, but it is valuable, with more than 40 technology patents and partnerships with the likes of the NBA, Fox Sports and Wimbledon. Plus, NextVR supplies its content to several existing VR headsets, including Facebook’s Oculus and devices from HTC, Lenovo and Sony. When you consider that Apple reportedly plans to release its own augmented reality headset in the next couple of years, this acquisition could put the company in a good position to blaze a new trail in this industry.
So far, virtual and augmented reality has not quite lived up to its promise though, especially now that supply chains have been disrupted due the COVID-19 pandemic. In fact, the International Data Corporation predicts that AR and VR headset sales will drop by 24 percent in the second quarter of 2020. But the market research firm foresees widespread sheltering-in-place will ultimately lead to an increase in demand, which will cause sales to rebound by more than 23 percent in the second half of the year.
Its purchase of NextVR makes this Apple’s third acquisition of the year at least, according to Bloomberg. As always, the company is holding its cards close to the chest, stating it “buys smaller technology companies from time to time, and generally does not discuss its purpose or plans.”
