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“Microwhales have the ability to broadcast and operate content on the Internet in China. We have also established a VR team. Jaunt is very good at recording high-quality content, and NextVR has an advantage in live broadcasting. This is a very complete puzzle. "On August 9, 2016, NextVR announced the completion of the $80 million Series B round of financing for the participation of the Chinese Cultural Holdings Group ("Chinese Culture").
Like a giant funnel, Chinese culture's content, technology, platforms, and hardware are distributed from top to bottom, and VR content is continuously exported to the audience through micro-whales.
“When the two parties began to contact, they actually did not start this round of financing.†During an exclusive interview, Xu Tao, a consultant for the strategic development of Chinese culture, revealed that Chinese culture and NextVR had been established in the fourth quarter of 2015. The connection, the importance attached by the Chinese culture to VR live broadcasting and the advantages of NextVR in live broadcasting have become the basis for the cooperation between the two parties.
Live streaming is a form of VR content that is highly valued by Chinese culture with strong media attributes. “Actually, NextVR has accumulated technology for many years, and we have many business cooperation and some follow-up arrangements with them in addition to the capital level. Technology can all form a very good cooperation and collaboration with micro-whales in China's domestic direct broadcast business, said Li Huaiyu. 
As a company established in 2009, headquartered in Los Angeles, USA, with nearly 30 technology patents in the field of VR broadcast, NextVR has never concealed their strong interest in the Chinese market. “With this new funding, we will focus Build NextVR's virtual reality platform to broadcast premium sports and music content to meet the world's largest audience,†said Brad Allen, executive vice president of NextVR. “Our new partner has the most powerful content in Asia and The media distribution capability has injected great confidence in our expansion plan."
“It was probably at the end of the first quarter of this year and the beginning of the second quarter that this round of financing began. The whole process is about four or five months because the investors involved are in different countries and regions, so the time is It's a bit longer. But the communication between us is very smooth." Xu Tao said.
The live broadcast is one of the VR contents that consumers are most interested in. A VR report from Goldman Sachs shows that by 2025, the VR live broadcast market space will reach US$2.5 billion.
Also in April, Microwhal Technology, a subsidiary of Chinese culture, released its own VR strategy. NextVR had announced the cooperation with Chinese culture in VR content at the conference. After this round of financing is completed, Chinese culture and NextVR are conducting closer communication at the business level. “In addition to investment, cooperation in operations, and even exploring the establishment of a joint venture company in China, these different ideas are now processing."
It is certain that Chinese culture and NextVR have begun to work together at the technical level. Chinese culture hopes to combine the technology of NextVR and the technology of micro whale to create a better live broadcast technology that is more suitable for domestic bandwidth environments. . "We will have a live VR in every round of the Super League competition next year, so we will have a lot of cooperation and collaboration in these businesses. I think there should be very good results in cooperation next year." Li Huaiyu The cooperation between the two parties is very confident.
How to integrate and collaborate
Whether it is announced in April that it will invest 1 billion yuan in innovation industry funds globally, or has successively cooperated with Jaunt and NextVR, for Chinese culture, it is step by step to establish and improve a content, technology, platform VR full-scale industrial chain including hardware. This industry chain will use micro whale as the main axis, and through its own research and development and investment, we will work together to continuously enrich and improve the main axis from the content and technology. 
In the field of VR technology, Microwhale currently independently researches and develops and exclusively owns technologies and equipment including the micro whale VR integrated camera and solution, VR live streaming technology with 360 degree panoramic multi-camera switching, and virtual live scene plus Sight Control switch. At the same time, it is cooperating with Tencent Cloud to jointly develop technologies such as VR cloud services, underwater VR shooting, VR social networking and shopping.
In the content field, the Micro whale VR platform already possesses a large number of exclusive VR live and joint production rights for sports and entertainment IP. The VR content that has been released includes top Chinese vocals, good Chinese songs, Heroes of the World, National Football Team, and Football Association Cup. Live football events, Zou Shi Ming Boxing match, Kunlun live broadcast, SNH48 MV and live broadcasts and a large number of star concerts and other content.
In terms of investment, apart from participating in NextVR's Series B financing. As early as September 2015, Chinese culture together with Disney and Evolution Media Partners conducted a $65 million leading investment in JAUNT. On April 25th, when micro whale announced its VR strategy, it also announced that it will invest 1 billion yuan in innovation industry funds globally in the next three years, and partners will produce 10,000 hours of VR content. On May 31st, Microwhale and Shanghai Media Group (SMG) and JAUNT announced the joint venture of JAUNT China, with a total investment of more than US$100 million.
In these layouts, micro-whales have become a central link in all aspects of connectivity. More importantly, micro-whales provide a platform for Chinese culture to integrate the entire industry including technology, and use micro-whales to improve the entire strategic puzzle and give itself more technical capabilities. Through the introduction of Li Huaiyu and Xu Tao, it is concluded that Chinese culture and micro whale will advance the layout of VR in the following aspects. 
1, VR broadcast and recording. The Microwhale will also collaborate with the IP content of Chinese culture to conduct VR live broadcasts. “I guess this is the most important part of the entire VR chain, because now the development of VR, the content is very important, and it needs very good live streaming of these content. At the source, it breaks through the very big barriers to the entire industry. Is also a very core area of ​​the micro-whale." Li Huaiyu stressed.
2, micro whale VR application platform. The microwhale tries to increase the awareness of micro-whales by more C-end VR eyewear users through the establishment of this platform. This platform adapts to all mobile phones that meet the playing needs of VR content. Users who purchase VR glasses can easily experience it. The high-quality VR content provided by the microwhales “allows him to have a better understanding of VR and follow-up to have more to watch and interact with.â€
3, content creative production. "Can use some technologies including drones to shoot ordinary people or scenes that are difficult to reach under normal circumstances." Li Huaiyu believes that such shooting can reflect the creative power and shooting techniques of the microwhales. "A lot of scenes are subzero. Dozens of degrees of outdoor environment. With this type of camera, we can guarantee that it is a stable shooting state and reflect our leading differentiation in technology."
4, hardware. "The very low cost of these glasses has the advantage that it can make more consumers experience the charm of VR, but this is not suitable for prolonged use and there are many pain points. So we are committed to doing an equivalent angle, easy to use, The smoothest, most stable, high-quality hardware is expected to be released in the fourth quarter."
5, VR offline entertainment. “The experience of VR is richer, more entertaining, and more valuable. We think that VR may have some unique content.†Xu Tao feels that VR offline experience will have unlimited imagination, and it also matches the CMC's offline. The strategic layout of entertainment, "There are some companies trying different business models, we will pay close attention to this aspect. Maybe there will be some layout in the short term."
6, investment. Xu Tao said that Chinese culture will continue to pay attention to new technologies and new content at home and abroad. "I think the industry of VR is now, especially on the content side, no matter what kind of content it is or what kind of method it produces, there is still a lot of imagination and room for development in the future. Hardware It also needs to be universal." 
VR Investment Logic of Chinese Culture
“Now, the entire market is not too mature, and I think it hasn’t reached the stage of real effort. The degree of attention in this market is compared with the current development of products and products, and the popularity of hardware. In other words, although there is a lot of money flowing in, there are still many people who can see how far this area can go."
In Xu Tao’s introduction, the Chinese culture's strategy to deal with this situation is to grasp the top-notch content and the core technology with leading position. It will be the core competitiveness of Chinese culture in a certain area.†Regardless of whether the market is developing at a fast pace, or if its direction of development has changed, our strategic position is still quite flexible and takes a commanding height."
At the same time, in the investment logic of Chinese culture, while optimistic about the future development potential of these companies with head content and core technologies, they will also attach equal importance to the development philosophy of this company. “We have long communicated with these companies and their Concepts, the direction of development in China, and other aspects can all be effectively linked to Chinese culture and micro-whales. These linkages may be the formation of joint ventures or cooperation in business.â€
There is no doubt that Jaunt and NextVR are in line with Chinese cultural investment principles. NextVR co-founder DJ Roller, who came to China in April, said that China has a vast territory and many places of interest. What NextVR needs to do is to turn these contents into VR documentaries or do VR live broadcasting. This idea and micro-whales have been stressing The production of high-quality and creative content coincides exactly.
In the B round of financing that NextVR had just completed, NetEase, CITIC Guoan and Chinese culture together became the main participants in this round of financing. More and more Chinese capital is becoming a competitor of Chinese culture investing and M&A in the international market. However, in Xu Tao’s view, “the VR cake has to be large enough to be large enough. It is more important to polish products and technologies and fully unlock the potential of the market.â€
The current situation in China is that the culture and entertainment consumer market is constantly growing. However, in the Internet era, the demand for culture and entertainment is global, and the country will also want to see more international content. And with the development of the national economy, Chinese companies that have a lot of cash flow will inevitably participate more in foreign investment, acquisitions, and mergers. In this case, Xu Tao’s three investment logics are said: The first one will buy overseas content and enjoy control in the country; the second is to buy companies with advanced technology and IP. Down, operating these IP; the third is to master the production of technology.
"Now that VR is very hot, many entrepreneurs are flooding into this industry. We see in the industry that a large number of entrepreneurs have an embarrassment about the industry's prospects, but they haven't studied and understood it thoroughly. Technology and creativity are An important factor that influences the direction of the industry,†Li Huaiyu said at the end of the interview.
Xiao Wei Li Ruigang
NEXTVR
VR layout of Chinese culture
NEXTVR