Inside VR: What IMAX’s Failure Taught Us About the Future of Immersive Storytelling

Podcast Intro

In 2017, IMAX tried to bring virtual reality to theaters, and failed. But the story didn’t end there.

In this episode, Bob Cooney explores what went wrong with IMAX VR, why its brand extension never made sense, and how a new generation of large-scale, story-driven VR experiences is succeeding where IMAX stumbled. From Horizon of Khufu and Titanic to the upcoming Black Mirror immersive experience, Bob connects the dots between IMAX’s documentary roots and today’s free-roam VR storytelling boom.

He also breaks down the numbers, the business models, and the opportunity for movie theaters sitting on underperforming auditoriums to transform them into profitable immersive venues.

Show Notes (for podcast platforms)

Topics Covered:

• How IMAX VR began and why it failed to align with IMAX’s core storytelling brand.

• The historical evolution of IMAX: from museum documentaries to blockbuster format.

• Why early VR gaming arcades couldn’t make money (low throughput, high labor, poor fit).

• The rise of “large-scale free-roam storytelling VR” , and why it works.

• Case studies:

  • Horizon of Khufu (Excurio) - the $25M immersive expedition that proved the model.

  • Univrse + Banijay’s upcoming Black Mirror VR - mainstream storytelling in LBE.

  • Wevr, Small Creative, and others bridging art, education, and entertainment.

• How 2,500 sq ft theaters can host 50+ guests profitably.

• The movie theater opportunity: converting 5,000 underperforming auditoriums into VR experiences.

• Real-world examples:

  • Sphere’s $15M pre-sales for Wizard of Oz.

  • Cosm’s immersive screenings of The Matrix and Willy Wonka.

  • IMAX generating 20% of opening-weekend box office on just 1% of global screens.

• Why collaboration among VR studios is essential, and how LEXRA aims to unite them.

Key Takeaway:
The future of immersive entertainment lies between cinema and gaming. Story-driven, free-roam VR - what Bob calls “walk-through theaters” - can do for this decade what IMAX did for the 2000s: redefine how audiences experience stories.

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