Editorial: The Rapidly Changing Face of the Music Industry—What Sansar Is Doing Wrong (and Fortnite Is Doing Right)

Earlier this year, after an extended break, I rejoined the official Sansar Discord server, and while I have not nearly been as active there as I used to be, I still lurk from time to time. I had a good laugh at this snippet of conversation from the day before yesterday (and yes, I do have both Medhue’s and Vassay’s permission to quote them, and to post this image here on the blog):

Medhue: Literally, Ryan Schultz does more marketing for Sansar than Sansar does.

Vassay: Funniy (sadly) enough, that’s true.

Medhue: IMHO, we have a bunch of people who live in the past, when music was a 50 billion dollar industry. It is not anymore, and likely won’t ever be again. Gaming has always been growing and there are really no signs of it slowing, grabbing more and more of the entertainment market each year.

Wookey has been strangely silent since its purchase of Sansar, and their team have been largely absent from the Sansar Discord. And yes, it is indeed true: even though I barely write about Sansar at all now on this blog, I still do more promotion of Sansar than Sansar does! This relative lack of marketing activity is frankly baffling to me. After all, the often ineffective marketing of Sansar by Linden Lab contributed to the difficulties it encountered in enticing people to visit the platform—and keep them coming back for return visits, a key indicator of success.

As you might know, the money-losing Sansar was recently sold by Linden Lab to Wookey. Many Linden Lab staffers who worked on Sansar moved over to Wookey, including Sheri Bryant, who was Vice President of Strategic Business Development and Marketing and then General Manager at Linden Lab, and is now President of Wookey Technologies (LinkedIn profile). She is widely credited with saving Sansar by setting up its sale to Wookey, and it is under her management that Sansar has significantly shifted its primary focus from a VR-enabled platform for world builders and content creators (i.e. a second-generation Second Life), to a VR-enabled live events venue.

An example of the recent shift in emphasis in Sansar (from the Sansar website)

While a quick glance at the Sansar Events calendar shows that the deal Linden Lab previously struck with Monstercat to bring live musical events into Sansar has continued now that the platform is owned by Wookey, the company is going to have to do a lot more work to attract musical artists to give virtual concerts in Sansar.

Let’s contrast the modest success that Sansar has had with Monstercat with what has been happening on other virtual world and game platforms in recent years:

In addition, both Microsoft-owned AltspaceVR (which has recently announced a pivot to live events) and the ever-popular VRChat (which is already home to popular talk shows such as ENDGAME, and many other regular live events) are no doubt eyeing the possibility of hosting live concerts on their platforms. And let’s not forget the upcoming Facebook Horizon social VR platform, where Facebook will probably take what the company has learned over the past couple of years with Oculus Venues, and where they will want to sign their own exclusive deals with musical performers to entice people to visit their platform after it launches.

And this is the important point: some profitable companies with very deep pockets—Epic Games (the makers of Fortnite), Microsoft, and Facebook to name just three examples—are going to want to get into this potentially lucrative market. Smaller companies like Wookey, trying to shop around Sansar as a live events platform, are going to find themselves outbid by companies like Epic Games to bring in top talent, which of course brings in more users to Fortnite. It’s a vicious circle; the big players get bigger, while the small ones fight each other for the leftovers.

Following on from Medhue’s point in the quote above, the music industry has already seen many changes and gone through many wrenching shifts in how it operates and how it makes money in the past (notably, the shift away from physical media like CDs to the now-ubiquitous music streaming services). But now the gaming industry is bigger than both the music and movie businesses combined!

The coronavirus pandemic has shuttered real-world concert arenas for the foreseeable future, which has only increased the economic pressure on the management representing the artists to sign deals with various metaverse-building companies in order to host virtual concerts and events. There’s probably already a lot of activity going on behind the scenes that we can’t see, but I expect we shall see quite a few announcements for virtual concerts with major musical artists, as well as many smaller artists, over the next six months.

Where Fortnite is already running circles around Sansar, even at this very early stage of the game, is their ability to sign deals with the highest level of talent (using all those billions of dollars of profit earned from their games like Fortnite), and their ability to host massive live events for millions of attendees (again, leveraging off their technical know-how to build and maintain the necessary infrastructure to support millions of Fortnite players playing the game simultaneously all around the world).

One thing that Wookey could be and should be doing for Sansar is promotion—and yet they are leaving it to bloggers like me to talk about the product. Where is the marketing? If they are holding off on marketing, waiting until they land some big-name events, I think that would be a tactical error.

Wookey needs to get Sansar’s name out there; many people in our attention-deficient society still have no idea that the platform even exists. Yet everybody and their grandmother has heard of Fortnite by now. That is no accident. Epic Games did a masterful job of fanning the flames of user interest. Wookey should be taking notes.

If no action is taken, Sansar is going to continue on its downward trajectory, slowly circling the drain, and eventually will fold. Linden Lab has already made many grievous errors in trying to effectively promote the platform; Will Wookey continue making the same mistakes?

Editorial: Facebook and Oculus Have Too Much Power Over Virtual Reality and the Metaverse

Facebook already has amply demonstrated how little they value the privacy and data rights of its users, in a succession of scandals uncovered by the New York Times and many other news media over the past couple of years (image from Forbes).

Facebook has the resources to capably crush competitors. Strip-mining the data of the estimated 2.7 billion people worldwide who use Facebook, WhatsApp, Instagram, or Messenger each month has been extremely lucrative for the company. (The five billion dollar fine the U.S. FTC recently levied against Facebook for their privacy lapses was a mere slap on the wrist, given the income the company generates each year from advertising. Mark Zuckerberg probably found the money from his couch cushions.)

I have already written about industry gossip that Facebook is plowing resources into creating a metaverse platform for all its Oculus VR hardware users. I willing to bet, dollars to doughnuts, that the Facebook metaverse is going to look a lot like Oculus Home, which is the where you are deposited when you first put on your headset. You can now visit other people’s homes, and recent updates include the ability for users to create their own spaces by uploading their own 3D models.

Some Examples of Oculus Home Interiors

Even better, Facebook gives you free furniture every week you sign into Oculus Home at least once, which you can use to decorate your space. It’s not hard to see how this can compete with social VR platforms like Sansar and virtual worlds like Second Life. And Facebook has deep pockets to fund advertising campaigns that companies like Linden Lab cannot ever hope to match.

And, of course, there is the complete line of Oculus VR hardware, including the popular new wireless Oculus Quest headset, which Mark Zuckerberg recently reported is selling as fast as Facebook can make them.

Which leads to the point of this editorial: in this evolving metaverse of social VR and virtual worlds, is too much power concentrated in the hands of a single, monolithic, profit-obsessed company? I would argue that Facebook is aiming for complete and utter domination of the VR universe, just as they already have in the social networking space, by creating a walled ecosystem with the Oculus Home and the Oculus Store that will have a negative impact on other companies trying to create and market VR apps and experiences. The field is already tilted too much in Facebook’s favour, and the situation could get worse.

Now, you can argue that Facebook has competition from other VR headsets such as the HTC Vive line of products and the Valve Index. And the Steam software distribution platform is an alternative to the Oculus Store. I understand that my purchased programs from the Oculus Store can still be played on an HTC Vive or Valve Index with the Revive software, which is somewhat reassuring to me (although I suppose there is nothing really stopping Facebook if they choose to block that avenue at some point in the future).

More concerning to me is that, at some point, I may be forced to get an account on the Facebook social network to use apps on my Oculus VR hardware. In fact, this has already happened with the events app Oculus Venues, which I recently discovered requires you to have an account on the Facebook social network to access.

Sorry, but after all the Facebook privacy scandals of the past couple of years, that’s a big, fat “Nope!” from me. I asked Facebook to delete its 13 years of user data on me, and I quit the social network in protest as my New Year’s resolution last December, and I am never coming back. And I am quite sure that many of Facebook’s original users feel exactly the same way, scaling back on their use of the platform or, like me, opting out completely. I regret I ever started using Facebook thirteen years ago, and that experience will inform my use (and avoidance) of other social networks in the future.

Yes, I do know that I have to have an Oculus account to be able to use my Oculus Rift and Oculus Quest VR headsets, and that Facebook is collecting data on that. I also know that the Facebook social network probably has a “shadow account” on me based on things such as images uploaded to the social network and tagged with my name by friends and family, etc., but I am going to assume that Facebook has indeed done what I have asked and removed my data from their social network. Frankly, there is no way for me to actually verify this, as consumers in Canada and the U.S. have zero rights over the data companies like Facebook collects about them, as was vividly brought to life by Dr. David Carroll, whose dogged search for answers to how his personal data was misused in the Cambridge Analytica scandal played a focal role in the Netflix documentary The Great Hack (which I highly recommend you watch).

We’ve already seen how social networks such as Facebook have contributed negatively to society by contributing to the polarization and radicalization of people’s political opinions, and giving a platform to groups such as white supremacists and anti-vaxers. The Great Hack details how Cambridge Analytica used Facebook data without user knowledge or consent to swing the most recent U.S. election in Donald Trump’s favour, and look at the f***ing mess the world is in now just because of that one single, pivotal event.

We can’t trust that Facebook is going to act in any interests other than its own profit. Facebook has way too much power, and governments around the world need to act in the best interests of their citizens in demanding that the company be regulated, even broken up if necessary.

Oculus Venues Comes to the Oculus Quest

In 2018, Facebook/Oculus launched the Oculus Venues app for the Oculus Go and Gear VR. They describe Oculus Venues as follows:

Oculus Venues lets you attend LIVE events in VR with all the sounds, lights, and energy of really being there. You can watch the Golden State Warriors defend their title, rock out with top musical artists, catch an improv show, or enjoy a classic fright fest, complete with audience commentary. You can even get exclusive accessories or tops for your Oculus Avatar at select live events, including official NBA jerseys so you can show support for your favorite team! Oculus Venues puts you in the front row for concerts, sporting events, comedy shows and more. Choose from an ongoing calendar of live, immersive events in VR where there’s always something new to see. Join thousands of others to share the experience and meet other fans, or watch in solo mode from a box seat high above the crowd. Oculus Venues lets you feel like you’re really there for the best events in VR.

As of today, July 24th, Oculus Venues has been extended to the new standalone VR headset, the Oculus Quest!

Hang out with your friends or connect with thousands of fans as you take in all the lights, sounds, and energy of larger-than-life events from the best seat in the house. And on Quest, you’ve got full hand presence and 6DOF (six degrees of freedom) tracking, so you can dance to your favorite songs, cheer for your home team, and interact with the crowd like never before.

Among upcoming live events are a July 24th soccer/football match between Liverpool Football Club and Sporting Clube de Portugal at Yankee Stadium, and Tenacious D performing their animated and over-the-top rock opera Post-Apocalypto live at the Palace Theatre in St. Paul, Minnesota on July 31st.

Basically, I expect Oculus Venues will operate much like Bigscreen does, where your avatar is fixed in place in its seat and watching an (in this case, live) event on a screen in front of you. Note that this is a totally different concept from events such as the ongoing Monstercat concert series in Sansar, where the live performers are actually embodied as avatars sharing an experience with you in a virtual world, instead of being on a flat screen in front of you.