VR Big Data Report 2016

Transcription

1 VR Big Data Report Copyright Huawei Technologies Co., Ltd All rights reserved. This document is developed by Huawei ilab. Huawei ilab may supplement or amend related information at any time without prior notice. This document is copyrighted by Huawei ilab, and photos from the Internet are copyrighted by their original authors. Do not distribute this document without permission. After being authorized by Huawei ilab, state the source "Huawei ilab" when distributing this document. This document cannot be used as a basis for investment or research decisionmaking, or as a basis or proof for ethical, responsibility, or legal purposes, either expressed or implied.

2 Contents First Year of the VR Era: Five Predictions 02 Consumption: The Ice-Breaking VR Market 06 Production: Soon Arisen User Experience Distribution: From Local to Online 05 Scenario: Digital Floods Brought by the VR Living 06 Future: Next-Generation Communication Platform

3 01/02 Report Data Source To display the developing trend of the VR era more accurately, the report also releases various data information, which mainly comes from the following two sources: ilab exclusive survey: The ilab Spider searches open information on the Internet for analysis. Third-party open data: Key conclusions from this report are extracted and analyzed based on third-party data from MPEG, Storm Mirror, iimedia, and so on. 01 First Year of the VR Era Five Predictions *Crawler data collected till December 30,

4 03/04 First Year of the VR Era: Introduction to the Public The application and products of virtual reality (VR) came out a long time ago in the 1990s. During the 20 years of technical development, the application mainly lay in specific fields like industrial simulation, aviation, and military medical treatment. As some technical problems are solved and low-cost solutions have appeared, the year of is regarded as the first year of the VR era. Since then, VR has been officially introduced to public consumers and integrated into people's daily lives. Key Technologies of VR The development of key VR technologies focuses on the performance of virtual environment, and interaction between that and users. The virtual environment performance depends on four media technologies including 360 video, free-viewpoint video, computer graphics, and light field. 360 video: The panoramic shooting is used for real recording from the user viewpoint in the center. 360 video technology is also the earliest to become commercially available online. Free-viewpoint video: The free-dimensional (freed) shooting is used together with modeling calculation for a changeable viewpoint of the user which is composed of real viewpoints and virtual viewpoints. This technology currently has experimental products but is not commercially available in large scale. Computer graphics: Virtual entities are rendered by modeling and computing. The large calculation volume makes the technology applicable locally mainly. Light field: The technology records the light intensity and angle information, resulting in a large calculation volume. Some experimental products are currently available. The evolution of media technologies constantly enhances the authenticity of VR. The interaction between users and the virtual environment includes key technologies such as locating, and motion capturing. The locating technology integrates user locations and the virtual environment. The motion capturing technology builds a connection between users and the virtual environment. Model reconstruction Motion capturing 360 video VR key technologies Freeviewpoint video Computer graphics The development of interaction technology pushes VR from weak interaction to strong interaction. Locating Light field technology

5 05/06 Five Predictions 1. Short-term: The sensory experience improves as media technologies evolve. The single-eye resolution is raised to 2K, and the full-view resolution is raised to 8K. The audio has distance, direction, and spatiality. 2. Mid-term: The network capability evolution enables more VR applications to go online. 3. Mid-term: The development of interaction technology pushes the VR to evolve from the "look only" weak interaction to strong interaction. 4. Mid- and long-term: The iteration of media, interaction, and network technologies constantly increases the user base, replacing Solo VR with Social VR, and making VR the real next-generation communication platform. 5. Further future: The integration of VR and AR, and of virtual world and real world, fulfills the human life revolution. Experience enhancement 02 Consumption: The Ice-Breaking VR Market From fully-virtual to mixed reality From local to online From weak interaction to strong interaction From Solo to Social

6 07/08 User Base: The Fast Propagation of VR 709% Digital news: The average weekly number of reports about VR in exceeds 1,000, which is 487% more than that of Social network: The number of WeChat official accounts about VR has reached 1109 with over 100,000 published articles. Search engine: The number of searches of the keyword "VR" on Google Trend/Baidu Search drastically increased by 709% than that of Google search popularity 100 Change trend of the search popularity of "VR" on Google Metropolises: VR Consumption Pioneers 49% The on-demand playing volume in tier-1 Chinese cities such as Beijing, Shanghai, Guangzhou, and Shenzhen takes up a great proportion of the total volume in China. Other major cities and coastal cities are also ranked at the top regarding the VR video on-demand playing volume. Digital media users in developed cities are more open to new concepts, are exposed to richer information, and have higher purchasing power, making the popularization of VR easier Baidu index Search index change of "VR" on Baidu August 2014 July 2015 January Percentage in the top 10 14% 12% 10% 8% 6% 4% 2% 0% Beijing Guangdong/Guangzhou Top 10 regions for VR video user distribution Shanghai Guangdong/Shenzhen Zhejiang/Hangzhou Guangdong/Dongguan Sichuan/Chengdu Jiangsu/Suzhou Chongqing Guangdong/Foshan Source ilab

7 09/10 Curiosity: Biggest Motive for Purchasing 75.80% of users use VR devices to meet their curiosity. But purchases out of curiosity are not necessities. Experience is the key to seize customers. Percentages of users who make purchases for the experience of unknown contexts and new technology are 45.30% and 40.70% respectively. Mobility and Comfort: Expectations for Terminals 60.61% Survey results from MPEG show that the wireless HMD is the most desired type of terminals by users % of users choose wireless HMDs as their first choice, whereas, only 18.90% of users choose wired HMDs as their first choice. In another third-party survey, the main factors that affect users' purchases of VR hardware include non-dizziness (70%), diversity of available contents(66%), and degree of immersion (65%). (Source: Research Report on VR User Behavior in China, by Storm Mirror) Motives of users for using VR devices Wireless HMD 60.61% Wired HMD 18.90% Curiosity 75.80% TV STB PC browser 8.66% 8.59% Tablet 6.19% Source: MPEG Unknown contexts New technology 45.30% 40.70% Source: Research Report on VR User Behavior in China No dizziness Diverse contents Optimal immersion Comfortable wear Good visual effects Spatial mobility Reasonable pricing Easy operation Well-known brand Nice appearance 9% 24% 40% 39% 38% 57% 55% 70% 66% 65% Source: iimedia Research Report on VR User Behavior in China, H1

8 11/12 Immersive Gaming+360 Video: First Choice of Content Consumption Weak Loyalty: Low Daily Usage Time Immersion is the most significant and straightforward feature of VR compared to traditional media. Survey results from MPEG show that 45.07% of consumers prefer the immersive VR gaming. Other scenarios such as 360 live (42.96%), and recorded 360 sports and concerts (30.99%) are also preferred by consumers % < 30 minutes Survey results from the National Advertisement Research Institute and other institutes show that heavy VR users spend less than 30 minutes daily using VR in H1. According to MPEG, the discomfort and low content quality of VR terminals cause 42.68% of users to expect only 2 to 10 minutes of VR contents. Users who expect VR contents of over 60 minutes only take up 16.86%. Gaming-like content Live broadcast including sports and broadcast Documentaries produced specifically for VR Education and training Recorded sports and concerts 45.07% 42.96% 38.03% 37.32% 30.99% Using frequency of VR heavy users 72% 21% 7% Use almost every day Use frequently Use occasionally 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 14.5% 13.9% 35.7% 27.5% 8.4% Communication and telepresence applications Full movies Supporting highlights for events/movies/shows 16.9% 15.49% 28.17% Definition of heavy VR users: users who have purchased various VR devices in the past year 0.0% Source: Research Report on VR User Behavior in China within 5 minutes 16 to 30 minutes 6 to 15 minutes Over 60 minutes 31 to 60 minutes Commercials/Advertisement content 12.68% User-generated content News content 11.97% 10.56% 2 to 10 minutes 42.68% 10 to 30 minutes 27.2% Source: MPEG < 2 minutes 18.02% 60 to 180 minutes 24/7 linearly scheduled programs 6.78% 10.08% Source:MPEG

9 13/14 Discomfort and Storytelling: Barriers of VR Popularization 52.11% The top 3 factors which users regard as the biggest barriers of VR are the discomfort of HMDs (52.11%), psycho-physiological discomfort such as dizziness (47.89%), and lack of experience in VR storytelling (45.77%). Discomfort/Reluctance to wear HMDs 52.11% Motion sickness and other psycho-physiological factors 47.89% Lack of experience in VR storytelling 45.77% Lack of content creation tools 39.44% Fragmented technology space 35.92% Lack of end devices 26.76% Lack of standards for compression 24.65% Lack of commercial business case 23.24% 03 Production: The Budding Experience Quality Lack of economically viable distribution means Lack of interest from consumers or lack of awareness 23.24% 19.01% Source: MPEG

10 15/16 A. Terminal: The Unfulfilled Key Parameters Either VR headsets that rely on host drivers (Oculus Rift CV1, HTC Vive, and PlayStation VR) or standalone headsets that integrate screens with calculation units (Pico Neo, and DeePoon VR), or glasses that require mobile phones to be put inside the box (Samsung Gear, and Cardboard), have the following parameter restrictions on user experience: B. Content: VR 360 Videos Take Up the Largest Proportion of VR Contents 99.37% The number of gaming apps on mainstream VR application distribution platforms exceeds other app types. VR 360 Videos are in a dominant position with a 99.37% proportion in VR content types. Single-eye resolution: 1K FOV: 110 Full-view resolution: 4K The less-than-20-millisecond motion-to-photon (MTP) latency has become the standard specification of VR terminals. The dizziness caused by the local MTP of mainstream VR terminals is no longer a bottleneck for user experience, but low-quality content on low-cost VR glasses may still cause such discomfort. 100% 90% 80% 70% Proportions of content types 99.37% Device Equivalent resolution Maximum FOV (Vertical & horizontal) Single-eye resolution Oculus Rift CV1 2160x1200 H: 96 V: x1200 HTC Vive 2160x1200 H: 100 V: x1200 PlayStation VR 1920x x % 50% 40% 30% Proportions of content types Pico Neo 2400x x1080 DeePoon M2 2560x x1440 Samsung Gear VR 2560x x1440 Storm Mirror x1440 (highest reachable) x1440 Cardboard 2560x1440 (highest reachable) x % 10% 0% 0.58% 0.05% Gaming Software 360 video Source:iLab

11 17/18 B. Application: High-end Apps Tend to Require Payments? Oculus Rift CV1 and HTC Vive aim at supreme experience, which have 71.92% and 73.13% paid apps respectively. 61.7% of paid apps on Oculus Rift CV1 are within the price range of RMB Apps on HTC Vive that costs less than RMB10 take up 50.2% of all paid apps. C. VR 360 Video: Lack of Long Videos For Experience 69.30% of VR 360 videos are short videos (< 4 minutes), and less than 1% of VR 360 videos are longer than 20 minutes. How to tell a story in the VR perspective is the challenge for 360 VR content creators. This challenge greatly affects the production of long VR 360 videos. Storm Mirror aims at low- and mid-end experience, which has up to 98.48% free apps % 98.48% 80.00% 71.92% 73.13% 3.78% 0.73% 60.00% 40.00% 28.08% 26.87% Free Paid 20.00% 0.00% 1.52% Oculus Rift CV1 HTC Vive Storm Mirror Source: ilab 26.19% 69.30% < 4 minutes 4 10 minutes minutes > 20 minutes 60.0% 50.0% 40.0% Oculus Rift CV1 Source:iLab 30.0% 20.0% HTC Vive Storm Mirror 10.0% 0.0% Over 100 RMB Source: ilab

12 19/20 C. VR 360 Video on Demand: Coexistence of Full-View 1080p, 2K, and 4K Resolutions 96.00% 68.52% Storm Codec and YouTube are platforms with the highest number of 4K VR 360 videos in and outside China respectively. Platforms in China: The percentage of 4K videos reaches 96% on Storm Mirror, which is one of the major professional VR platforms. Over half of videos (55.48%) on Youku VR channels are in 4K. C. VR 360 Video on Demand: Rough Views 4K VR = 240p TV = 10 PPD What determines the VR visual experience is the image quality within the FOV, which is defined by pixel-per-degree (PPD). A full-view 4K VR 360 video has only 10 PPD, equivalent to 240p on traditional TVs, resulting in poor visual experience. Large FOVs on immersive terminals require higher full-view resolutions. A full-view 4K resolution is far from video quality satisfaction. Full-view 8K or higher resolutions are essential for VR contents. Taking a 90-degree FOV as an example: Full-view 8K: 1920x1920 single-eye resolution, PPD = 22 Full-view 12K: 2880x2880 single-eye resolution, PPD = 32 LeTV mainly provides 1080p videos. Platforms outside China: 68.52% of YouTube VR videos are in 4K. Facebook mainly provides 2K VR videos (90.7%). 3840x1920 panoramic picture x960 panoramic picture 960 ICP 720p 1080p 2K 4K LeTV VR 0.00% 99.85% 0.15% 0.00% Storm VR 0.00% 0.00% 4.00% 96.00% Youku VR 9.97% 20.60% 13.95% 55.48% YouTube 8.33% 13.43% 9.72% 68.52% Facebook VR 0.85% 7.25% 90.70% 1.20% 1920 Full-view 8K resolution Single-eye resolution 960

13 21/22 C. VR 360 Video on Demand: Less Than 30 fps Is the Mainstream, 50/60 fps Is Rare 50/60 fps < 7.00% VR 360 videos on platforms generally have a frame rate of lower than 30 fps. C. VR 360 Video on Demand: Immature Popularization of 3D < 12.00% 3D 360 videos with binocular stereo vision on these platforms take up only less than 12%. 2D videos without binocular stereo vision are the mainstream. The proportion of videos with a 30 fps frame rate on YouTube is 75.70%. Platforms in China still have a large proportion of videos with a lower than 30 fps 100% 98.03% 97.45% frame rate. The percentage of VR videos at 15 fps on Youku reaches 49.1%. Some platforms have 50/60 fps videos, but the proportion is below 7%. 90% 80% 88.20% ICP 15 fps 18 fps 24 fps 25 fps 30 fps 31 fps 50 fps 60 fps 70% LeTV VR 1.20% 0.40% 9.10% 40.50% 44.20% 1.70% 1.20% 1.70% 60% Storm VR 0% 0% 9.80% 35.60% 52.60% 0% 1% 1% Youku VR 49.10% 0% 2.70% 20.00% 28.20% 0% 0% 0% 50% 40% 3D Panoram Non-3D panoramic YouTube 1.40% 0% 1.40% 14.90% 75.70% 0% 1.10% 5.50% 30% Facebook 0.90% 0% 6.70% 13.50% 72.30% 0% 4.70% 2.00% 20% 10% 0% 11.80% 1.97% 2.55% Oculus Vrideo YouTube Source: ilab

14 VR 大数据报告 23/ 24 C. VR 360 Video on Demand: H.264 Encoding Format Is Still the First Choice in the Industry All platforms choose H.264 as the coding format for VR 360 videos because of high HEVC patent fees. YouTube also provides videos in the Google VP9 coding format. ICP File Type Coding Format YouTube MP4, WebM H.264, VP9 Facebook MP4 H.264 Discovery VR TS H.264 Vrideo MOV, WebM, OGG H.264, VP8, Theora Littlstar VR Cinema MP4 H.264 C. VR 360 Video on Demand: Projection Format to Be Evolved ERP projection is a traditional format for projecting VR 360 videos, but images are subject to distortion and the compression efficiency reaches a bottleneck. PSP projection format is the new trend in the industry which has low distortion and high compression efficiency. Among 9 VR 360 video platforms analyzed in the report: Six platforms provide only the ERP projection format. One platform provides both ERP and PSP projection formats. Two platforms provide only the PSP projection format. Traditional OTT platforms such as YouTube tend to choose the ERP projection format. Emerging VR platforms such as Facebook and Storm VR evolve more rapidly and tend to choose the Cube projection format. Facebook also develops the Octahedron projection format with the highest efficiency in compression, which can improve the encoding compression efficiency by 80%. This format has been applied in some Gear videos already. Within MP4 H.264 Youku (VR) FLV, MP4 H.264 ICP YouTube Facebook (web) Facebook (Oculus) Projection Format ERP Cube Cube ERP 100% LeTV VR MP4 H.264 3D Bobo MP4 H.264 Facebook (Gear) Littlstar Discovery Within Vrideo Octahedron ERP ERP ERP ERP Cube 75% Storm VR MP4 H.264 Youku (web) Youku (VR) LeTV VR ERP Cube ERP Cube 20% Storm VR Cube

15 25/ 26 C. VR 360 Video On Demand: Bit Rates Are Higher Outside China Than in China D. VR Live Broadcast: Mainstream Scenarios Are Big Events, Reality Shows and Sport Games 12 Mbit/s VS 6 Mbit/s Outside China, Vrideo and YouTube provide 4K videos at Mbit/s. The bit rates of all 4K videos on platforms in China are lower than 6 Mbit/s. The bit rate of 4K videos on Storm Mirror, which is a professional VR platform, is only 4 Mbit/s and lower than that of 2K videos in the same projection format on Facebook Currently, VR live broadcast has debuted in some big events and sport games and it will become a trend in the future. The Olympic Games, NBA, and multiple sports games such as European Cup have tried VR live. In October 2015, CNN cooperated with NextVR to VR live broadcast the Democratic TV debate for the first time. In November, the US election voting was VR live broadcast in social applications by AltspaceVR. Platforms in China such as Xiaoxiong VR and Xiaohuaxiu VR have already provided various channels for live VR reality show p 1080p 2K 4K LeTV Storm VR Youku VR Vrideo YouTube Facebook

16 27/ 28 D. VR Live Broadcast: Image of Poor Quality D. VR Live Broadcast: Obvious Video Delay < 5 Mbit/s Most VR live broadcast platforms provide videos at resolutions of full-view 2K or lower. The average bit rate is generally below 5 Mbit/s. Video quality can be greatly improved. YouTube began to support full-view 4K VR live broadcast at 60 fps on December 1. Meanwhile, full-view 4K live broadcast has been applied to influential big events, such as Faye Wang's concert broadcast by Whaley, with VR live stream at 25 fps and 7.8 Mbit/s. 50s Professional VR live broadcast platforms tend to use real-time streaming media protocols such as RTMP to implement VR live broadcast, keeping the broadcast delay between 3 to 50 seconds. When the servers are running under a heavy load or poor network conditions, real-time video experience is poor. Traditional OTT VOD platforms tend to use DASH for VR live, and ensure the smooth live broadcast using adaptive bit rates. As the most influential platform in the VR live broadcast field, NextVR provides 180- degree semi-panoramic live broadcast only to reduce production costs. However NextVR will definitely support 360 panoramic VR live in the future. ICP Transport Protocol Adaptive Bit Rate Definition Selection Live Broadcast Delay Platform Xiaoxiong VR Media Stream Protocol Projection Format Resolution Average Bit Rate (Maximum Resolution) Frame Rate (fps) Coding Format RTMP ERP 2880* kbit/s 30 H.264 RTMP ERP 3072* kbit/s 30 H.264 Xiaoxiong VR RTMP No No 3~50s Xiaohuaxiu VR live broadcast HTTP flv No No 3~50s YouTube (PC) Dash Yes Yes 20~30s Xiaohuaxiu VR HTTP flv ERP 2880* kbit/s 25 H.264 YouTube Dash ERP 2560* kbit/s 30 H.264 NextVR \ ERP (180 ) 1024*512 \ 30 H.264 YouTube (mobile) NextVR (mobile) Dash Yes Yes 20~30s \ \ \ \

17 29/ 30 D. VR Game: Pursuit of Visual Impact 60% Emergence (2013): Early VR games are constructed upon simple scenarios where players can roam around; for example, on a roller coaster. However, compared with traditional games, such VR games still bring basic immersion experience and visual impact. D. VR Game: Improved Interaction Mode Brings Real immersion Experience 52.45% 52.45% of VR games use positioning and motion controllers for interaction, improving the immersion experience. Exploration (2014 to 2015): With combination of traditional games and VR sensual effects, immersion experience and visual impact are further strengthened. Explosion (): The video quality, immersion experience, and story integrity of VR games are greatly improved. Action/Adventure games with exciting sensual experience accounts for 60% of all games on the three major platforms % Keyboard and mouse 52.45% Handle 70% 60% 63.9% 61.6% 62.4% 24.36% Positioning and motion controller 50% 40% 30% 20% 10% 12.4% 7.1% 7.7% 29.0% 30.7% 25.3% Oculus Rift CV1 HTC Vive Storm Mirror Source:iLab 0% Action/Adventu re games Strategy games Leisure games Source: ilab

18 31/ 32 D. VR Games: Single Player Mode Becomes the Mainstream 89.2% On mainstream VR game platforms, the number of single-player games takes up 89.2%. D. VR Games: Lack of Online Experience 81.9% On VR game platforms, the number of local games takes up 81.9%, while the number of online games less than 20%. Scenarios in multi-player games are far more complex so that players can better immerse into the games. With the development of technologies, multi-player game will grow exponentially. 10.8% 18.1% Single-player games Multi-player games Single-player games Multi-player games 89.2% 81.9% Source: ilab Source: ilab

19 33/ 34 Predictions: Top 3 Internet Channels 75.35% 04 Distribution: From Local to Online According to the MPEG VR survey report: Internet streaming media, Internet download, and cloud rendering are the top 3 channels for distributing commercial VR services in the industry. The percentage of companies that choose Internet streaming media is 75.35%. Network channels connect production closely with consumption, improving the efficiency of delivering VR contents to consumers and strengthening users' sense of participation during online interaction. Meanwhile, cloud rendering lowers the performance requirements, reduces the costs, and effectively improves the mobility of terminals. Network capability evolution is the prerequisite for VR applications to transit from local to online. Adapt Streaming over the Download from Internet 44.37% Cloud-renderedstreaming Managed IP streaming Packaged Media Conversational Low Latency Traditional broadcasting 33.80% 22.54% 19.01% 17.61% 8.45% Source: MPEG

20 35/ 36 Current Situation of Distribution: Streaming+Download Network Requirement: VR 360 Video On-Demand The main distribution method of VR 360 Video is online streaming, which accounts for more than 99% of current VR contents. The main distribution method of games and other applications is download Mbit/s The minimum bandwidth required for smooth VR video playback is 2.98 times the average bit rate. Drag the video slider to a random point, the bandwidth required for loading the video within 1 second is 4 times the average bit rate. The bandwidths supporting 2K and 4K videos are 25.8 M bit/s and 46.1 M bit/s respectively. 0.63% Mbit/s % Download Streaming Source: ilab p 480p 720p 1080p 1440p 4k Avg Bitrate Smooth Playback Loading Time<1s Source: ilab

21 37/ 38 Network Requirements: VR Live Broadcast The minimum bandwidth supporting smooth VR live broadcast without freezing is 1.5 times the average bit rate. Mbit/s 7.0 Network Requirements: Applications Mbit/s Currently, the sizes of applications in mobile VR app stores range from 20 MB to 500 MB, and that on PCs range from 200 MB to 20 GB. To download 500 MB within 1 minute on a mobile device, the minimum bandwidth must be 66.7 Mbit/s To download 20 GB within 10 minutes on a PC, the minimum bandwidth must be Mbit/s. The percentage of VR application with an update cycle that is less than 30 days reaches 91.67% File Size (MB) Bandwidth Requirement (Mbit/s) 1min 5min 10min 30min Distribution of App Update Cycle 8.33% Average bit rate Required bandwidth % 16.67% 5.00% 16.67% days 8.33% days days days 0.0 Xiaoxiong VR (3072x fps) Xiaohuaxiu VR (2880x fps) YouTube (1920x fps) days over 30 days Source:iLab Source: ilab

22 VR Big Data Report 39/ 40 Evolution Roadmap: Experience and Network Requirements of the VR 360 Video Evolution roadmap of VR 360 video experience and information transport amount within spherical full view Standard Continuous experience duration Pre-VR (Current) Entry-Level VR Advanced VR Ultimate VR < 20 minutes < 20 minutes 20 to 60 minutes > 60 minutes Estimated time Within 2 years Within 2 years 3 to 5 years 5 to 10 years Video resolution Single-eye resolution Full-view 4K 2D video (full-frame resolution: 3840x1920) 960x960 (with glasses and 90 FOV) Full-view 8K 2D video (full-frame resolution: 7680x3840) 1920x1920 (with glasses and 90 FOV) Full-view 12K 2D video (full-frame resolution: 11520x5760) 3840 * 3840 (with specialized HMD and 120 FOV) Full-view 24K 2D video (full-frame resolution: 23040x11520) 7680 * 7680 (with specialized HMD and 120 FOV) PPD (Note 1) Equivalent traditional TV screen resolution 240p SD HD 4K Color depth (bit) (HDR) 12 Compression ratio (Note 2) 165:1 165:1 215: 1 350:1 (3D) Frame rate Typical video bit rate 16M 64M 279M 3.29G Typical network bandwidth requirements (Note 3) Typical requirement for network RTT (Note 4) Typical requirement for network packet loss rates (Note 4) 25 Mbit/s 100 Mbit/s 418 Mbit/s In this phase, FOV transmission has become the mainstream: 1 Gbit/s for smooth play 2.35 Gbit/s for real-time interaction 40 ms 30 ms 20 ms 10 ms 1.4E-4 1.5E-5 1.9E-6 5.5E-8 05 Scenario: Digital Floods Brought by the VR Living Note 1: PPD is short for pixel per degree. The retina of common human beings can reach the resolution of 60 PPDs. Note 2: The compression is calculated based on empirical value of H.264, HEVC and H.266. The contents of left and right 3D eyes are highly related; therefore, compression at a large proportion can be completed without much quality distortion. Note 3: For typical network bandwidths capable of smooth play, the value of the video on demand (VOD) is estimated by 1.5 times of the bit rate. Note 4: With a specific target latency value, the packet loss probability is calculated using the TCP throughput formula based on the actual network bandwidth.

23 VR Big Data Report 41/ 42 VR Shopping: Journey of Spending VR News: Present on the Scene 30 times 30 times At "Double 11" shopping festival in, Taobao launched a VR shopping platform called Buy+, taking you to Australia within 10s, where you started the journey of spending. Compared with "service purchase" in offline shops and "convenient shopping" in online shops, VR shopping focuses on "purchase with fun".taking shopping in offline shops as an example, Shopping on mobile phones consumes traffic about 3 to 4 MB, while VR shopping about 94 to 120MB; The traffic consumption is increased by more than 30 times. Traditional news media starts to present news contents in the form of VR. Currently, VR news is generally presented in forms of 360 panoramic video and CG scenario, allowing users to be present at the event in the first perspective. A traditional SD news video consumes about 5.5 MB within 80s based on empirical test results. However, a VR panoramic news video consumes about 150 MB within the same duration; the traffic consumption is nearly 30 times that consumed by a traditional news video kbit/s Traffic Wave Diagram of Buy+ Shopping Media Presentation Mode Contents The New York Times November 2015: NYT VR APP Films and promotion videos; for example, the short video The Displaced BBC Provides VR panoramic videos on YouTube, Facebook, and other platforms. Education videos and documentaries kbit/s 0 Welcome scenario Selecting a store Transmitting a video Shopping scenario Welcome scenario Selecting a store Transmitting a video Shopping scenario Shopping mall 1 Shopping mall 2 Traffic wave diagram of common Taobao shopping Source: ilab Tmall Home Page Home page for female clothing Home page of a flagship store Purchase page Purchase Page Source: ilab ABC News 360 panoramic videos ABC news VR and short videos The Associated Press 360 panoramic videos and live broadcast Documentaries and entertainment news; for example, The Suit Life USA Today 360 panoramic videos Harvest of Change VRT Nieuws 360 panoramic live broadcast News reports NHK 360 panoramic videos Election of Myanmar President NetEase News Caixin Media 360 CG scenarios 360 panoramic videos CG scenarios; for example, Chernobly Documentaries and news reports; for example, the documentary Kindergarten in a Mountain Village

24 VR Big Data Report 43/ 44 VR Exploration: Travel Around the World at Home 70 times Google launched a Google Earth VR application in November, presenting the traditional Google Earth in the form of VR. Therefore, users can travel around the virtual Earth sitting comfortably at home. 06 Compared with the traditional Google Earth, the Earth in the form of VR provides highquality 3D geographic maps and lifelike CG scenarios. Based on empirical test results, traffic consumed by the VR Google Earth for browsing the map is 15 times that by the Earth in common version. In addition, browsing lifelike VR CG scenarios consumes 70 times the traffic consumed by common 3D maps. Kbit/s Google Earth VR 3D map Google Earth common 3D map Future: Next- Generation Communication Platform 0 Source: ilab

25 VR Big Data Report 45/ 46 Industry Roadmap: Widespread Commercial Use of VR in 2020 VR Piloting: Broadcast TV and Terminal Customization The work plan and vision of MPEG-I Phase1: Support commercial use of 3 DoF VR technology (360 Video), to implement comprehensive and mainstream commercial objectives in 2020; Phase 2: Explore 6 DoF VR technology (such as light field and 3D Graphics). Degrees of Freedom In the first year of the VR era, carriers play a leading role in delivering services and enter this field. Broadcast TV: BT Sports cooperated with LiveLike in providing VR 360 live videos about English Premier League football games at four experience shops in London. Since October, Korea Telecom (KT) provided VR 360 live videos about TV programs such as Infinity Challenge, Shopaholic Louis, and K-POP Super concert. Phase 1a Phase 1b Phase 2 Terminal customization: Goal: Developing the first set of VR standards in time. Projection and coding of the HEVC-based 360 video MPEG-H-based 3D Audio Streaming transmission of the 360 video The format and framework of the 360 video described by OMAF Goal: Enabling commercial use in Extending and optimizing the objectives in Phase 1a Adding new contents and making up the defects, such as optimizing the projection technology and further compressing the MTP. Next Gen. Video Coding Goal: Supporting 6 Dof VR technology. Supporting 6 Dof VR videos, like Light Field. Audio also supports 6 Dof VR technology. Including 3D Graphics. France Telecom Orange launched customized terminal VR1 and a mapping VR 360 Video application on October 20,, which will be released in markets in France, Spain, Belgium, Poland, and Luxembourg. Having certain definition and measurement on quality end/early /2017: Commercial Trials 2017/2018: Initial Commercial Launch /2017: Mainstream Phase 1

26 VR Big Data Report 47/ 48 Social VR: Next-Generation Communication Platform 100 times Social VR is a VR concept for multiple application scenarios. Social networking makes VR a way of communication and the next-generation communication platform. Avatar and Share are two core elements of Social VR. The evolution of Social VR is focused on the continuous development of Avatar and Share. The relationship, defined by traditional digital media services (for example, OTT video services), between the increasing Social VR network bandwidth requirements and the number of users will be no longer linear. Traffic consumption of typical Social VR applications is nearly 100 times that of traditional social applications. high medium low Avatar Fidelity Vive platform Oculus platform Recroom vtime Oculus Social Beta Altspace Surreal VR FackbookPrototype State status share Environment share Experience share Share information richness Future Direction of the Industry: 8K higher + Spatial Audio + Social Social VR is a brand-new concept, seamlessly connecting various VR applications scenarios and integrating real life into the virtual world. If it becomes the next-generation communication platform, future Social VR products should have the following features: 8K and higher full-view resolution 2K resolution and auxiliary displays for a single eye Spatial audio that can create sound effect based on the Avatar's distance and direction Avatar can be incorporated into the virtual environment in 360 videos. It implements the live experience of shared scenery, ball games and live concerts. Leading companies in the industry must have visionary foresight to achieve this objective and push the whole industry toward the VR era. Traditional online application: The relationship between the traffic requirements and the number of users is linear. Server Social application: The relationship between the traffic requirements and the change of user quantity is nonlinear. Socical VR Server Server1 Server n Stream 1 Stream n Stream N+1 Stream 11 Stream 21 Stream 2n Stream 2n+1 Stream 1n+1 Cllent Cllent Cllent Stream Cllent 11 Cllent Cllent New add New add Source:iLab