Samsung is looking to provide a boost to the virtual reality movement with the launching of Milk VR, a service which will provide 360-degree videos for free to Gear VR virtual reality headset users.
Milk VR will be slowly adding content to attract users to the service, which is Samsung's response to the criticisms regarding the lack of content available for the Gear VR.
The 360-degree videos to be uploaded on Milk VR will also be serving as the models for filmmakers and artists that might be looking to use the medium of virtual reality in the future. Milk VR is also expected to build up the ecosystem for virtual reality videos, along with a constant viewership for the kind of content.
The launch of Milk VR increases Samsung's position in the content industry, where it already has Milk Video and Milk Radio in place. The company seems to be investing a lot on its virtual reality content in the service, as DiCarlo revealed that Samsung will be paying for content uploaded on Milk VR.
"Video is like the Wild West in VR," said in an interview earlier in December by Samsung VR business head Nick DiCarlo.
"There are so many ways to shoot immersive video. Milk VR can play a wide range of content," DiCarlo adds.
Samsung teamed up with Facebook-owned Oculus for the development of a mobile-powered VR headset, resulting in the Gear VR. A limited Innovator's Edition of the headset was released earlier in December in the United States, which was intended for artists and developers that were looking to do test runs on the gadget.
The Gear VR, which costs $199, needs a Samsung Galaxy Note 4 to fully function, as the smartphone serves as the headset's processor, display and sound output.
According to DiCarlo, the measure of success for the Gear VR is not in how many units it sells, but rather on the engagement of its users to the headset and the Gear VR community. DiCarlo, however, did not say when he thinks virtual reality would widely be accepted by most consumers.
Samsung is hoping that virtual reality can become a growth engine for the company, as one of Samsung's most important sources of revenue, smartphones, has been slowing down, leading to reductions in the company's profits.
Samsung has not performed well with its Galaxy S5 smartphone in the higher end of the smartphone market, losing out to Apple and its iPhone 6. For the lower end of the smartphone market, Samsung is also losing ground due to the pressure from low-cost mobile phone manufacturers such as Xiaomi, which offer smartphones with sometimes even better features and specifications at lower prices.
