iPhone maker Apple acquires NextVR, a startup video streaming service that offers 360-degree video access to select concerts and sporting events across the U.S. in virtual reality (VR) format.
Apple confirmed the news to Bloomberg but didn’t disclose how much they were paying for the VR video content based company.
Bloomberg estimates the value of the deal to be around $100m which matches previous suggestions of what the cost of the acquisition deal might be.
Apple acquires NextVR at a time where they are ramping up on spend for their Apple TV+ video streaming service which will unlock new potential for what angles of content they can offer their end users.
Tim Cook, Apple’s Chief Executive, has made statements about how he sees AR being a major pillar to the companies future initiatives and suite of products and services for their millions of loyal customers.
Apple TV+ currently only offers 2D videos with no sports fixtures or any live programmes on their service but the company has been known to be working on an immersive mixed reality headset with a focus on augmented reality (AR).
COVID-19 has given a surge of demand for VR experiences giving people the opportunity to participate in live events and give them the experience of being at the event alongside family, friends, and other attendees.
Since the acquisition, NextVR’s website has changed to a simple landing page that says ‘new things are coming in the future’.
The startup’s technology that has a focus on streaming VR content can be viewed in a range of VR consumer headsets including Facebook Inc.’s Oculus and Playstation’s VR.
Apple has recently been on the hunt for AR and VR specialists being known for hiring numerous engineers and has built several expensive AR components for its mobile devices along with a set of tools for AR called ARKit.
Apple acquires NextVR along with the several patents for VR and the recording rights to sporting leagues including Wimbledon, NBA, WWE, and NHL.
NextVR was struggling with their finances in 2019 due to a funding round not going as planned and the cancelled live sporting events from Coronavirus added to this stress for the company giving Apple an opportunity to acquire the business to keep NextVR afloat.
NextVR had partnerships and deals in place for national live events in the sporting arena as well as live music concerts and debates in the 2016 presidential race giving users premium viewing seats.
