The eighth annual Entertainment Finance Forum was presented by Winston | Baker recently. Gathered in view of the Hollywood sign, attendees heard from a range of speakers.

Perhaps the buzziest topic was the panel titled Virtual Media, Real Profits. The speakers valiantly tried to answer when the profits would flow. No one described it as such, but it reminded me of the ‘zero billion dollar business’ when we launched pay per view at Disney many decades ago. But judging by the major players investing real dollars in start ups, big bets are certainly being placed. The three types of digitized reality are VR vs AR vs MR (a whole new world vs augmenting the real world vs mixing the real with the virtual). Will VR follow the path of 3D TV? The latter fell off a cliff after a few years of rising expectations. A big difference is the extant ubiquity of hardware: smartphones can be used as a VR device with an inexpensive cardboard viewer. Naturally, more immersive and expensive platform alternatives are on the near horizon with headsets from Oculus Rift, HTC and Sony.

Gaming, theatrical and home entertainment are the three channels where VR will make inroads. Storytelling is the big challenge, as the language is still being invented. “Witnessing, not watching” was an astute observation about VR. Venture capital investment will only take the startups so far; eyeballs need to be aggregated. Increased participation is the lifeblood of any success.

So what is the VR business model? Brands offer one solution, by underwriting production and coat-tailing marketing awareness. (Microsoft and McDonald’s are using Happy Meals boxes in Sweden to launch their fast food VR experience). Enterprise is interested in certain applications. The three big headset companies referenced above are underwriting production of content, which reiterates the mantra that content is king. As we and others have explored before, technology itself will not ensure success of a new platform. That said, the VR funding cycle can be lengthy, admitted the panelists. Film studios are investing resources, and one of the proof points was an immersive experience built around “The Martian.” The participant in that VR experience is tasked with taking on the chores Matt Damon faced in the film. One of the complaints about VR (for me and others) is the seeming fatigue after 12-15 minutes, but the panel assured us that the quality of the experience (hardware plus software) is accelerating daily, improving the experience and extending the immersion time.

LAS VEGAS, NV – JUNE 08: Al Lindahl takes a 3D engine journey with the Oculus Rift-powered Gear VR headset at the Penske Wynn Ferrari Showroom at Wynn Las Vegas at the Shell V-Power NiTRO+ Premium Gasoline event on June 8, 2015 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images for Shell)

The Art of VC Pitching was like an episode of Shark Tank. The four pitches ranged from ComicBlitz (‘the Netflix of comics’) to VRtuality (marrying VR, AR and EDM). The key elements for a successful VC pitch remain unchanged: size of market, ability to scale and quality of management. Many other factors play into the VC decision making process, but the frequency of these issues was evident.

Executives from Participant Media and Sierra/Affinity described their involvement in the making of “Spotlight.” Intriguingly, larger studio entities passed on the project but faith in the story resulted in a well-received film. The executives invariably were asked about recent bombs in which they were involved (“Gods of Egypt,” “Triple 9”). Mark Ruffalo was cited as the ideal actor due to his willingness to travel into international territories and passionately speak about the film. That passion results in greater availability of foreign funds at the financing stage.

HOLLYWOOD, CA – FEBRUARY 28: Actor Mark Ruffalo (L) in the audience during the 88th Annual Academy Awards at the Dolby Theatre on February 28, 2016 in Hollywood, California. (Photo by Kevin Winter/Getty Images)

The recurring theme of the gathering, without using the old phrase, was how to leverage OPM. Indeed, that is a decades-long theme in Hollywood. Other people’s money is invariably the safest bet to place, but without a decent track record, the search is always underway for new OPM. And fortunately for Hollywood, those people are always coming to town.