Amazon.com, Inc. (NASDAQ:AMZN) has been rumored to be taking the next step in the streaming industry and this time it revolves around virtual reality (VR). Sources claim that the company will soon start creating its own VR content.
Amazon’s creative studio division has revealed that the online giant is in talks with a number of companies to discuss plans to start creating original VR content. This is however not the first time that rumors have spread about Amazon planning to venture deeper into VR. A month ago there was a report that the company had a job opening for a software development who would lead Amazon’s virtual reality team.
Click Here For More Market Exclusive Updates & Analysis
Judging by the announcement, Amazon has clearly been planning to strengthen its position in the rapidly developing VR industry. However, the details of the company’s plans for VR are currently very scant. Nevertheless, it does make sense that the firm would try to leverage the emerging VR industry while it is still in its early stages. Many firms have come up with their VR headsets and they are quickly flying off the shelves. This means that the demand for VR content regarding games and video content will increase as the industry grows.
Amazon believes that the best way to approach the situation is to come up with VR content rather than concentrate on creating its own VR headsets. Amazon rivals such as Hulu and Netflix, Inc. (NASDAQ:NFLX) have also been employing similar approaches to VR. The fact that Amazon is willing to include its VR endeavor under Amazon Studios is an indicator that the firm aims to take it up as a long-term project.
The company’s involvement in VR content is good news for the VR industry because it will most likely lead to competition among content providers as each tries to come up with the best VR content. This will lead to improved video experience which is exactly where the industry is headed. The industry is currently in its infancy stage and therefore not much has been done as far as content is concerned.