Experience Economy 2.0
The Premium Era Dawns – Learn More at IAAPA
by Bob Cooney
By now you’ve heard of the “experience economy,” first referenced by Joe Pine and James Gilmore in their Harvard Business Review article, and later expanded in their best-selling book. The experience economy began 20 years ago, when people starting favoring experiences over possessions. Millennials are the poster children of the experience economy, and Instagram is their calling card, where they share with their friends and the world everything from travel photos to food porn.
Businesses have been chasing the experience economy goldmine for a decade now. Big brands have gotten involved now too. There’s an escalation in the war to provide experiences that’s reached an unsustainable level. The Sphere in Las Vegas might be the pinnacle. The $2 billion-dollar immersive entertainment venue hosts live concerts from the biggest musical acts in history.
Netflix is getting into the game, announcing two new Netflix House immersive entertainment venues in Dallas and Philadelphia in 2025. Meow Wolf just opened their 5th location, in Houston, and is building another in Los Angeles. Even Airbnb is getting into the act with their “Icons” stays. I just applied to stay in Prince’s Purple Rain house in Minneapolis.
It’s gotten to the point where the experience marketplace has gotten so crowded it’s almost impossible to stand out. If you did an attraction inventory of your business, how many of them would you say would live up to “iconic” status?
We’ve entered an era where premium experiences are what people seek. The good news is they’re willing to pay top dollar for them. Swifties paid thousands for tickets to the Eras Tour. COSM in Dallas is charging $100 to watch televised sporting events on a giant immersive screen. And even IMAX is shining these days, out-earning traditional movie theaters as consumers seek more immersive experiences.
Done well, VR can provide those iconic, immersive experiences. I recently spent an hour touring the pyramids of ancient Egypt at the Horizons of Khufu experience in NYC. People visiting the new Titanic immersive experience in Atlanta are able to explore the inside of the great ship, without getting their feet wet. Recently, I was in Prague and explored what it was like 500 years ago in the age of the Golum. And while in Amsterdam last month I became a Space Marine for half an hour courtesy of the latest Zero Latency game.
For an experience to be premium, it must offer lasting impact. Is it something people will remember a week from now? Or will they forget it as soon as the first cat video comes across their TikTok feed?
That kind of impact requires people to feel something. The Warhammer 40K: Space Marine VR experience gave me a sense of size and power that’s been lacking in a lot of VR games. I transformed into a Space Marine, and as I walked by a squad of puny-sized human soldiers, I felt larger than life. As we worked our way through the city, the sense of scale was truly immense. It was awe inspiring. And it left a lasting impression that weeks later I can’t stop talking about.
At IAAPA this year, I will be hosting a special educational and networking event. It’s being held, appropriately, at ICON Park’s In the Game, where I’ll be discussing the new “Premium Era of the Experience Economy” with Michael Schreiber from FunLab in Australia, Howard McAuliffe from Pinnacle Entertainment, Tim Ruse from Zero Latency, and some other surprise guests.
If you want to join me, reach out through The VR Collective community, LinkedIn or via email at bobc@bobcooney.com.
Bob Cooney is a global speaker, moderator, and futurist covering extended realities and the metaverse. Widely considered the leading expert on location-based virtual reality, his mission is to prepare the industry for the change coming as these and other emerging technologies begin impacting every aspect of our business and lives. He curates the VR Arcade Game Summit at Amusement Expo and the VR Collective distribution alliance as manifestations of that mission. Follow him at www.bobcooney.com.