REDONDO BEACH, CA / ACCESSWIRE / July 20, 2105 / Slip on your goggles and watch the actual environment around you morph into a whole new world. Maybe it's a trip to the far reaches of the Antarctic mountains where you begin a search for a missing exploration team and discover a surreal world as in Edge of Nowhere by Insomniac Games. Perhaps the goggles are the gateway to a prospective travel destination, like Marriott (NYSE: MAR) demonstrated when it partnered with Framestore to create an immersive 4-D experience that took potential vacationers to Hawaiian beaches and downtown London. These are the types of next-generation success stories hinging on the emergence of virtual reality (VR) into mainstream business and consumers to deliver countless opportunities to connect, learn, market and experience.
The Big VR Disruptors Coming to Market Soon
As noted by Oppenheimer last week, there is still some cynicism surrounding VR overcoming obstacles that have slowed promises over the past two decades about bringing truly immersive experiences to the masses. However, it is looking more and more like technology has caught up to concept, as evidenced by demos at the recent Electronic Entertainment Expo, or E3 as it's known, swaying the skeptical opinion of Engadget Associate Editor Timothy Seppala.
The time is upon us for investors to start paying close attention to VR companies with some big brands coming to market within the next year. This includes HTC's Vive by Valve VR headset expected to be released by the end of 2015, followed by the consumer release of Facebook's (NASDAQ: FB) Oculus Rift and Sony's (NYSE: SNY) Project Morpheus early in 2016. VR was a hot topic when Facebook spent $2 billion to by Oculus early in 2014, but it was moved to simmer on the back burner as the year moved on. The much awaiting launches of the Rift and Morpheus are going to turn up the heat on VR again, likely catalyzing the entire industry and Wall Street interest.
The Sweet Spot: VR Content Makers
Imagine Mattel's (NYSE: MAT) ViewMaster without any slides; it's basically worthless. The devices of HTC, Facebook and Sony are the ViewMaster of sorts and without the slides, the devices lose their purpose, putting an emphasis on VR content creation as one of the most substantial opportunities the VR space. Video games, such as the planned "Paranormal Activity VR" by Beast Media Group division VRWERX that is based on Viacom (NASDAQ: VIA) subsidiary Paramount Pictures' hit franchise, are the most talked about media with hundreds of small developers to make the next blockbuster, but that is only a small piece in the evolution of VR.
Video camera maker GoPro (NASDAQ: GPRO), who just got an upgrade from Barclays to "overweight," is moving into VR, acquiring French software company Kolor in April. Shortly after, GoPro unveiled a new mount that can hold six cameras to capture spherical content that coupled with Kolor software can be used to create videos for viewing on VR devices. Calling the new perspective an "Oh my God moment," GoPro chief executive Nick Woodman says that his company plans to simplify the relatively complicated process of making 360-degree video.
Next Galaxy: The VR Company You Should Know About
Next Galaxy Corp. (OTC: NXGA) has put itself at the head of the class as a VR content creator, aligning itself with sports legends and industry powerhouses with its content creation abilities, platform technology and hardware. Often overlooked because of its OTC status, this upstart has developed its technology at lightening speed and forged partnerships on the strengths of its offerings that would make many larger, more recognized companies envious.
Founded by serial entrepreneur and former Boeing (NYSE: BA) deep space engineer Mary Spio, Next Galaxy has partnered with the 3D experts at EON Reality to build Ceek.com, a fully immersive Virtual Reality hub for accessing entertainment, education and branded experiences. EON, already the go-to company for 3D, has evolved as a pioneer in virtual reality with its EON Sports' VR to train football recruits at more than 100 high schools and universities, including UCLA, Ole Miss, Syracuse and Kansas. Iconic basketball coaches also see tremendous potential for VR in their sport, as measured by Next Galaxy's partnership with University of Kentucky coach John Calipari and Syracuse University's Jim Boeheim.
Next Galaxy is not limited to basketball in its sports offerings, tapping into the large high school football market last month itself. In its efforts, the company inked a partnership with Great American Rivalry, a leading provider of high school sports competitions and related media, giving Next Galaxy exclusive rights to produce VR content for its Ceek platform. With this pact, NXGA and advertisers will be able to reach millions of high school football fans, as the Great American Rivalry Series enters its twelfth season featuring more than 100 games in 41 states. "This is a historic moment for Virtual Reality; as the first large-scale true virtual reality broadcast, the content will be widely distributed around the world," commented Mary Spio in the news announcement.
With its sports footprint continuing to grow, Next Galaxy recently brought on former NCAA National Champion (at Oklahoma University) and NFL lineman (New Orleans Saints) Akim Millington as its new Director of Virtual Reality Sports & Entertainment.
It's not just sports where Next Galaxy is making a name for itself. In May, NXGA brought on Berkshire Hathaway (NYSE: BRK) company Richline Group as a client. In the deal, Next Galaxy provided Richline a VR experience to showcase its wearable jewelry collection. This follows an agreement in March where Next Galaxy partnered with Miami Children's Hospital to develop VR medical instructional content for patient and professional use.
This brings up the point that while most VR companies are still developmental (or even only conceptual), Next Galaxy is employing a strategy that positions the company for revenue in the near term. No details were disclosed about upfront payments with Richline or Miami Children's Hospital, but Ms. Spio disclosed in a Wall Street Journal last month that the partnership with Miami Children's is structured such that Next Galaxy collects a percentage of app sales. Creating cash flow while completing development and rollout of Ceek and Ceekars (NXGA's 4D headset and controller described as "amazing" and "insane" by people at EAS) in time for the launches of headline VR headsets is key differentiator of Next Galaxy from others in the space and a testament to the leadership and business plan.
As mainstream VR draws ever closer, Next Galaxy is building a solid momentum at the right time. No other small public VR company has clients like a Berkshire Hathaway company and Miami Children's Hospital; been featured in videos and articles on Bloomberg, Fox Business, CNBC, Forbes and the Wall Street Journal; forged partnerships with the sports icons like John Calipari and Jim Boeheim; garnered investment from Steel Partners (NYSE: SPLP); and won awards, such as a one of nine top innovators at the 2015 eMerge Americas eP2 Conference and Top 10 Startup for MobileWeek 2015, recognizing Next Galaxy's leading-edge technology. Hardware is one thing in VR, but as GoPro has demonstrated, content and software, which should command high margins, are going to be a touching point for market penetration. Next Galaxy's roots are growing deeper and deeper in this space, leaving the company in an optimal position going forward.
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