Why FE is ahead of F1 on virtual reality

Virtual reality is the technological catchphrase of the moment. Huge global brands like Facebook and Sony are investing in it, and the technology has entered the motorsport bubble in the last 12 months as well.

Advertising and marketing kingpin Sir Martin Sorrell's declaration that virtual reality could transform F1's coverage in the years to come was positive in the sense that it brought an emerging area of technology into the F1 conversation. And the Williams F1 team's experimentation with virtual reality showed it's firmly on F1's radar.

Sorrell's interest in virtual reality is rooted in its financial potential. Though if F1's investment leads to a greater product and experience for fans, commercial implications will not matter because it will be worth the price.

The indications are positive regarding virtual reality's future in motorsport, but they aren't coming from F1 - they're coming from Formula E. While virtual reality is on the periphery of F1, it's already entrenched in its electric cousin.

FE is marking its territory, positioning itself as an obvious option for ideas such as virtual reality and eSports. Since ex-Formula One Teams Association secretary Oliver Weingarten introduced FE and Virtually Live, a company specialising in virtual reality technology, the push for the all-electric championship to adopt it has gathered pace rapidly.

It introduced on-site trials in Long Beach in April, opening the technology up to drivers, teams, fans and the media. That's continued at subsequent rounds, and the tech was also on display in a Virgin Media store in London. Make no mistake, FE and Virtually Live have been ramping up its profile to maximise feedback early on.

"Formula E is one of the most innovative developments in motorsport," says Virtually Live CEO Tom Impallomeni. "It's in position to drive the development of electric cars; similarly, we believe Virtually Live can represent the future of live motorsport viewing experiences.

"FE is leading the charge in bringing fans the best technologies to enhance the viewing experience. From the start, the partnership has felt like a natural fit."

Virtually Live has been involved in virtual reality trials in football, but the product lends itself much more readily to motorsport. By using the Magneti Marelli GPS data from races, it recreates them in computer-generated form.

The reason for this CGI representation, says Weingarten, is because "you can't stick yourself in the middle of a broadcast". But the idea is to go beyond the already much-used technology of 360-degree videos, for example.

There are minor bugs in the system, such as cars passing through each other. But each party insists that virtual reality - which in FE's example allows users to watch from different camera angles on each car, or from team garages or hospitality suites - is already at a level where it could be adopted into live coverage.

"Technically it could be released to fans in its current state," says FE's head of digital Tom Halls. "But we are keen to really enhance and flesh out the experience to build a product that we're both proud of and one that reflects the innovative nature of the series.

"Our data application programming interface allows us to recreate the race in VR as it's happening - no one else is doing this, so we're being conscientious about how fans would respond to that experience and how VR can be used to complement the traditional TV broadcast model."

Now we get to the crux of the matter: where does VR fit into a media landscape that, even for a series as 'innovative' as FE, is still rooted in traditional television broadcast deals?

The short answer is it doesn't. Not yet. Weingarten says this a matter for the championship and the various partners, but points out that broadcasters are monitoring the technology closely to ensure they are not left behind.

"This isn't 360-degree video, this isn't a game," he says. "A lot of partners are now coming to us about how they can have an experience created.

"It's extremely current and innovative, but broadcasters need to innovate as well and retain subscribers in a competitive and cluttered market."

The need for broadcasters to protect their interests means that while virtual-reality live coverage is feasible for the 2016/17 season, it is unlikely. And this is why FE's immediate focus is on trying to utilise the technology in different ways.

It is currently not demonstrating anything live in virtual form, focusing instead on recreating previous races. Halls says virtual reality could feature in the championship's increasing involvement in eSports events or at the launch of new circuits, while Impallomeni is more vague.

"Our roadmap aims to offer fans a much improved experience," he says. "With a reasonable amount of time between races, it makes sense for us to be developing a content strategy that extends beyond live."

That may sound like FE isn't all that far along with virtual reality, but what it's doing is encountering the technology's hurdles first. In an ever-changing media landscape, tapping into a new area of live coverage is always going to be a minefield.

And it makes sense for FE to explore other digital options, given that it appears to be enjoying far greater success with its online content than it is with locking down viewers live on television.

What's key is the technology's potential, not its current state. While virtual reality dates back into the mid-20th century as a physical product, it's only thanks to huge strides in technology over the last couple of decades that it has started to become a fully-formed concept.

That is why issues such as the rudimentary CGI (pictured) shouldn't be judged too harshly.

"We are happy that we have both delivered each track and, moreover, moved the technology to a place where fans see genuine value and benefit in the experience," says Impallomeni.

"The graphical quality is improving all the time, and will eventually become almost photo-real. Our goal is to deliver the best possible experience for viewers, so we are aiming for photo-realism and a true sense of immersion and presence."

Impallomeni says the feedback so far has been "exceptionally positive" and believes "there is a genuine hunger from Formula E fans to watch in this way at home". But there are further hurdles to overcome before this is a reality, as well as different areas of growth.

"The potential is huge, but it is a growing, evolving market," offers Halls. "New experiences are being developed all the time and the graphical engines to power the experiences are consistently improving.

"There are a number of video-game publishers already integrating VR into their existing racing franchises, for instance, so it's just a matter of time before the standalone VR experiences catch up.

"The coming together of VR and gaming is a natural evolution and one that will play a huge part in the entertainment world once major players like Sony come into the market later in the year.

"Our partnership with Virtually Live allows us to leverage those platforms and ensure we're ready to take advantage when the time comes.

"The biggest barrier to mass consumer take-up is probably the price of the hardware. But looking at the major competitors involved it's only a matter of time before the price of entry drops considerably, and the graphical elements will have enhanced significantly by that point.

"Once developers start building games and experiences from the outset with VR in mind I believe you'll see a much more cohesive consumer product."

Those involved in the project talk highly of the social integration of virtual reality, ie being able to 'watch trackside' with friends in different places. It's an interesting concept, and what it makes abundantly clear is that we don't know the full potential of this technology - only that there are many potential uses.

Virtual reality's short-term implementation and long-term prospects are not dependent on the championship striking deals to allow fans to use the technology to follow races live, though that will surely become a staple feature. The key aspect at the moment is it looks like it will be given time for its future to become clearer.

"You can't fail to be impressed by it," insists Weingarten. "If I was Bernie [Ecclestone] I would see how I'm going to monetise it.

"FE positions itself as an innovative championship and you can tell there are opportunities around it. They don't have as many rules as F1 or others that have been around much longer or have longer deals. Its demographic is the envy of many other championships.

"There's a lot of money in VR - Facebook bought Oculus and HTC lost a big proportion of the mobile market and is putting a lot of money into the Vive.

"It's not a fad, it will be around a long time."

Perhaps what's most fascinating is the freedom and flexibility that virtual reality will open up for fans' consumption of motorsport. Live coverage could just be the tip of the iceberg, and it's a damned sight more inventive and immersive than a fixed camera that spins in a circle.

All the more reason why championships and investors should be tapping into the market early. Right now, it's Formula E that is leading that process.