Nieuwe Instituut
Nieuwe Instituut

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3. Distribution Models

Habitat. Heleen Blanken. Nederlands Film Festival Storyspace, 2020. Photo: Joke Schut

This chapter looks at distribution models prevalent in other cultural subsectors: film, performing arts, visual arts, games and music. These sectors have similar challenges in terms of artistic value, technical complexity, and/or new forms of distribution. It is a global overview, based on findings from desk research and interviews with professionals. What lessons can creators, producers and other stakeholders draw from it? How can these insights be used to arrive at more sustainable and accessible distribution models for immersive content?

One important conclusion: a distribution strategy need not be based on a single model. On the contrary, a thoughtful strategy often consists of a combination of multiple models that complement each other. Depending on the nature and intended life cycle of the project - and the roadmap that a creator or producer, or expert involved, outlines - different distribution channels and forms of presentation can coexist. Precisely because of the multifarious nature of interactive and immersive work, there seem to be opportunities here. The more diverse the forms of distribution used, the greater the chance that a work will reach multiple audiences and remain economically viable.

Sara Tirelli aptly puts it, "You absolutely need to adopt a hybrid mindset to produce and distribute IX. One that understands what the moving image industry does, what theater has long done, and also draws from live performance, gaming, and the arts." Such an approach requires early choices, clear positioning, and a thorough knowledge of the landscape within which the work moves.

3.1 Film

"The industry tends to treat XR as if it’s cinema. That means they apply the same production models, but when it comes to distribution, it’s like an eternal void."

Sara Tirelli

The cultural IX sector strongly orients itself to the distribution model of the film industry. In the film world, distribution is a mature and firmly embedded system, with distinct roles for distributors, sales agents, cinema operators, streaming services and international marketplaces. Distributors play a central role: they purchase (the rights to) films, determine the strategy for screening and sales, and take care of marketing, subtitling, localization and contractual agreements with cinemas, festivals, platforms and sometimes even educational institutions or television channels.

Business models film distribution
A film distributor's revenue model is made up of several revenue streams. An important component remains box office revenue: distributors receive a percentage of ticket sales in cinemas, often around 30-50% of the revenue, depending on the agreements with the cinema operator. At the same time, online revenues (such as Video-on-Demand, licensing to streaming services or TV channels) have become increasingly important - especially for smaller or specialized films.

Distributors can also take advantage of incentives such as the European support programme Creative Europe MEDIA. Under this programme distributors receive € 0.50 for each cinema visitor to a European film in their catalogue, with the aim of promoting the circulation of European titles. In the Netherlands, the Netherlands Film Fund provides additional support for the distribution of Dutch films; in addition, there are European schemes under which a select number of arthouse films receive additional annual support.

Such mechanisms provide an important incentive to bring culturally diverse or artistically challenging films to the attention of a wide audience - even when the commercial risk is relatively high. In doing so, the film sector demonstrates that culturally-inclusive distribution is possible with support through public funding bodies.

In the IX sector, projects that recently received contribution under the Immerse/Interact programme can apply for a distribution voucher: an incentive for up to 3 presentations at home and abroad. Otherwise, there are no similar incentives for distribution. It is recommended to explore whether European schemes such as Creative Europe MEDIA can also be opened to distributors of European IX titles.

The cultural IX sector has now entered the international marketplaces of film festivals, making partial use of the film distribution ecosystem. But behind these marketplaces lies only a fledgling infrastructure for IX: the number of specialised distributors in Europe can be counted on one hand, and a full-fledged network of sales agents is as yet completely lacking.

Producer Corine Meijers confirms that unlike a standard documentary or film, the distribution process at IX is not set in stone: "Everything still changes during production. You try to stay within budget, but you also don't have a large infrastructure behind you, so you act as distributor, sales agent and marketer all at once. This is a big contrast to the traditional film industry, which should not be underestimated."

Territorial approach and 'windowing'
Despite the major differences, there are some interesting elements within film distribution that are potentially transferable to the IX sector, like the territorial approach to distribution. In the film sector, it is common for sales agents to divide worldwide rights into licences by country or region (e.g. Benelux). This approach, based on guarantees of exclusivity in that region, provides clarity about the distribution of rights and makes it attractive for local partners to invest in distribution. It is worth exploring to what extent this approach could be effective for immersive works, for example by granting exclusive screening rights per region to festivals, museums or other specialised institutions.

In addition, the film industry follows the so-called windowing principle - in which a film is released in phases through different channels such as festivals, cinemas, VOD platforms and television. This can provide inspiration for building a distribution roadmap within the lifecycle of immersive productions. Sometimes in the IX sector this is already applied. In addition to the example of In Pursuit of Repetitive Beats (section 2.1), the work Ayahuasca (Jan Kounen, 2029) is also a good example: distribution started with a festival premiere followed by a festival tour, followed by temporary installations in museums, with the work now for sale through digital distribution on the Oculus Store.

Marketing strategies
Another lesson from the film industry is the emphasis on audience building and contextualization. Distributors invest in promotional materials, press relations, subtitling and educational support. Section 2.5 already discussed the importance of marketing strategies for immersive works, that are usually not well known to the general public. For the same reason, audience outreach is even more important for IX than for film. In film this is implemented in the form of educational or contextual programs with, for example, introductory texts, short presentations, or context programming (such as post-screening talks or exhibitions) that help the audience understand the work better or experience it more deeply.

Standards
Following the example of the film industry, serious steps are already being taken in France to develop technical standards to facilitate the distribution of XR experiences, according to the report Understanding the market and needs of XR companies in France. Launched in 2022, the partnership between FIS (French Immersive Studios) and PXN (Producteur-ices d'Expériences Numériques) - the French association of independent producers of digital experiences dedicated to XR, games and Web series - is to develop joint standards on which creators, studios and producers can base their content. These are focused on equipment, software and workflows. This should not only improve compatibility and technical exchange, but also support cultural institutions who want to invest in XR equipment. It also helps creators understand the technical requirements their work must meet to be widely shown. Such standards have already been successfully implemented for 360-degree video, but is more difficult to define for interactive content or immersive installations because of the many options in hardware and interaction models.

Case study: lessons learned from short film
It is relevant to look not only at feature film distribution, but also at the parallels with short film. Like many immersive productions, short film lives primarily within the circuit of festivals, themed programs or special screenings - and then often disappears from view. As creator Tupac Martir also points out, "Short film has a very similar structure to what XR is doing. You rarely see short films outside of film festivals, unless it's a retrospective or a dedicated short film event."

Still, solutions have been found for the short film sector. Martir argues that XR should look at how short film managed to organise itself between about 2005 and 2017: a period when there were no dominant streaming platforms yet, but innovative forms of distribution did emerge such as online bundling, educational use, or integration into cultural events. Andrew Allen's article "Lessons From a Decade of Short Film" shows how small-scale productions managed to find an audience outside traditional channels; this offers valuable lessons for XR.

These years also saw the emergence of a model in which festival screening served as a springboard to broader online distribution, as read in The Rise of Short Film Distribution Companies: Changing the Landscape of Film Production and Consumption. Makers began to think more strategically about online premieres on platforms such as Vimeo and later YouTube, often after the festival cycle had ended. As a result, the online release was no longer seen as a less valuable side-event, but as a serious second phase in the life cycle of a short work.

In addition, a form of "micro-distribution" or self-distribution emerged during this period: creators began to offer their work directly through their own channels, or started woking with niche online platforms focused specifically on shorts, such as Short of the Week, Omeleto, or NoBudge, states the article "Hot New Platforms, Streaming Media Change the Equation for The Indie Filmmakers". During this phase, specialised distributors for short film also saw the light of day - think Shorts International or Ouat Media - dedicated to digital sales, international licensing, and compilation releases.

The rise of on-demand streaming and content aggregation marked the next step: short films were increasingly offered in thematic collections through streaming services or television channels. While many of these forms of distribution rely on strong curation and visibility through platforms or press, they show that short formats can build sustainable circulation, if properly guided and positioned. In short, the history of short film shows that sustainable distribution need not depend on a single channel or model. Instead, it exists in a differentiated landscape in which festivals, online platforms, niche distributors and streaming curators each play their role. A similar infrastructure for IX - with hybrid models, curation and alternative revenue structures - could help the industry extend the life cycle of immersive projects.

3.2 Performing Arts

Buyouts vs. ticket sales
The performing arts - including theatre, dance and performance - has developed its own distribution models over time, in which companies and theaters maintain a closely intertwined relationship. Traditionally, companies worked with a so-called buy-out fee: a fixed fee paid by a theatre or festival for screening a performance. This fee usually covers (in part) the costs of travel, lodging, technique and artistic performance, thus removing some of the financial risk from the company. IX creator Tupac Martir also primarily uses the buyout model for the distribution of his work: "Usually we just get a fee, and then we go and build everything. It's very much like a traditional theatrical model."

Within the performing arts in recent years - especially with smaller companies or at more experimental venues - there has been a shift to a ticket sales system, where income from ticket sales is shared between company and theatre. This model shifts the risk more explicitly to the creators. Large companies and festivals still use the buy-out model, but even then the company is increasingly expected to contribute financially, from its own subsidies or production budgets.

Marieke Nooren points out the challenges around ticket systems for XR: "The ticket sales system seems difficult to me, especially with VR, because the number of participants per session remains small." Still, it may be interesting to look at this system, perhaps within hybrid models, where immersive works are presented in combination with theatrical or contextual programmes. In doing so, audience reach is increased and broader storylines and themes can also be unlocked - an approach that fits well with how theatres programme thematically and content- wise. The previously described case of Darren Emerson's In Pursuit of Repetitive Beats (section 2.1) makes clear that his "tour" is founded on the theatrical model.

Active role creators
Typical of the performing arts is the active involvement of the company in the distribution process. It is usually determined at an early stage where the work will be shown, who the audience is, and how the programme will be embedded. Distribution is thus not an abstract, retrospectively organised part, but integral to the creative process from the beginning. Marieke Nooren indicates: "The risk increasingly lies with the theatre companies themselves. It used to lie with the theatres, but now creators are expected not only to bring the work, but also to bring audiences, positioning and sometimes funding."

In addition, it is interesting to consider how shared responsibility in the performing arts can serve as a good example. In the performing arts, the emphasis is on joint positioning: creators and programmers search together for the right context, the right audience and the right timing. This requires commitment and involvement from both parties, but also leads to more meaningful screenings and stronger audience loyalty. One possible obstacle within digital culture could be the constant drive to see something new. Gaby Wijers says: "In theatre, re-taking and replaying are commonplace, whereas in digital culture you're much more likely to hear: okay, we've had this, on to the next thing."

Fixed venues
The performing arts mostly use fixed screening locations such as theatres and other venues. There may be opportunities for the IX sector to also make more and better use of such venues as presentation spaces. The black box of a theatre - unlike many white cube exhibition spaces - almost always has a usable technical infrastructure such as rigging, projection capacity, lighting and sound systems, and technical staff. This also makes theatres ideally suited for building more complex immersive installations.

3.3 Digital and media art

Digital art and media art have some overlap with the IX sector. For example, as an organisation LI-MA positions itself at the crossroads of digital art and media art, but also has overlap with IX. Other organizations such as V2_, Fiber, Creative Coding Utrecht, iii or IMPAKT, and festivals such as Noorderlicht, STRP, Sonic Acts, Schemerlicht and Conflux also combine these different disciplines. It is valuable to see what lessons can be learned from the way they organise themselves in this broader sector.

Digital art and media art have been around longer than the IX field, and have acquired a certain standing in the visual arts world. Work in this field, like IX, is distributed through festivals. It also seeks distribution in the traditional visual art world, with sales through galleries and art fairs. The commercial revenue models used in the traditional art world are not (yet) prevalent in the IX field.

Whereas film distributors are primarily concerned with commercial tasks such as financing, marketing and booking screenings, and where art distributors are primarily concerned with selling work, distributors in the media arts sector are expected to take on an often more substantive set of tasks. In the absence of infrastructure, they also take on more specialised activities such as curating and preserving art works.

There are not many distributors for media art worldwide. The DINAMO network, the coalition of media art distributors, has just under 30 members. Most members focus more on outreach than revenue, and usually operate on a nonprofit basis, with or without government support. This often means they are less dependent on sales results and better positioned to place artworks where they will do best: in festivals, museums or galleries, according to A New Era for the Distribution of Media Art. The downside is that currently this field cannot be seen as ideal example, as it lacks a standard revenue model.

Documentation
An important lesson from media art: it (also) benefits distribution if documentation and (future) conservation and archiving are taken into account at an early stage of the creative process (see also section 2.1). If works are well documented and preserved, as Gaby Wijers of LI-MA suggests, then it becomes easier to re-present older media artworks - a relevant starting point for the sustainable handling of immersive productions. Unfortunately, this is rare. The responsibility does not lie solely with individual creators or producers: after all, it takes place within a broader context.

In this regard, Boris Acket argues that the 'architecture' for the purpose of collection formation and preservation is lacking in media art as a whole. Here, among other things, lies a role for heritage institutions; the NADD (Netwerk Archieven Design en Digitale Cultuur) is engaged in research around this theme.

Equipment and knowledge
An important aspect of distribution of media art - as well as immersive work - concerns (the transportation of) equipment and technology. This is often expensive and vulnerable, and must be rented or purchased. Institutions do not always have the right knowledge to install or maintain technology. LI-MA also identifies a growing need among creators for technical know-how, especially around equipment in relation to preservation - a concern that is at least as relevant in the immersive sector.

This is also evident in the conversation with Boris Acket. An engaged attitude on the part of the maker, who has the technical know-how themselves, is invaluable. In his own work, Acket integrates flexible systems that can be used in multiple works: "At one point I thought: owning the material is actually a way to kind of initiate that distribution myself. If we want this to repeat itself, and if we want to make something that continues after that first version, we have to buy those materials or make them ourselves. (...) Then I started thinking in modular systems - in what ways should I be able to build something? Something that can stand on a stand, be waterproof, be placed on a ground screw and also be hung - something that is very flexible. And then what you notice is that in your own practice, all of a sudden, three, four years in a row, you can unfold that system in all kinds of ways, and there are actually five, six works hidden in there. So then you start making those systems a little more practical. And this makes distribution a little easier, and it turns out that produced works can be distributed very easily supplemented with rental items. (...) Everything that I thought would be really impossible to show internationally is now just going everywhere - from Australia to Mexico to America."

This way of thinking and working is a good example of how distribution can benefit from early consideration of a work's life cycle.

Preservation of time-based art
A specific category of works of interest for preservation purposes is time-based art: art forms that unfold over time and in which movement, duration or change is essential. This can take the form of video, performance, film, computer or sound art.

Major art museums such as Tate, the Victoria & Albert Museum, Guggenheim Museum, Smithsonian and MoMa are at the forefront of complex methodologies for the conservation of time-based art, where huge departments of experts have now been set up to deal with them. The methodologies can provide tools for extending the lifespan of immersive works, and further research is needed for a practical translation to the IX sector. For example, the aforementioned A New Era For the Distribution of Media Art describes that Rhizome, the new media art hub affiliated with the New Museum in New York, offers practical tools: it developed the concept of object boundary, a term that can help one think about what does and does not belong to the artwork when the work can be presented, collected or distributed. The object boundary includes everything that can be considered the artwork, plus all other resources involved in its execution.

Michael Conner writes on Rhizome's blog, that decisions about defining the boundaries of a work, without the proper manual and without certain conventions as a guide, can be particularly subjective. Using a specific Web-based work as an example, he asks whether it "should be presented in Netscape Navigator 3 running in the cloud, or whether the source code should be read aloud in a 24-hour YouTube performance?" While this example may be somewhat demonstrative, it does indicate the importance of thinking about and establishing the object boundary in such work. In this case, what makes the artwork? Is it the source code, is it the code in combination with the original browser, is it the image that this combination ultimately produces?

A New Era For the Distribution of Media Art also cites the Smithsonian American Art Museum, which, in order to establish the object boundary, requires a classification from the creator for the equipment used. For the work in question, is this "unique," "dedicated," "historic" or "non-dedicated" - a scale indicating the essence versus the substitutability of the equipment specific to the work. Formulating such object boundaries can also be valuable for the distribution of IX: by spatially and temporally anchoring a digital or immaterial work, or by developing adapted versions, it becomes more integrable into existing models of distribution and sale - such as ticket sales in the performing arts or commercial art dealing. This invites reflection on which manifestations of a work can still be seen as representative and acceptable of the original concept, it also opens the door for thinking about possible new forms.

Travelling Exhibitions
An interesting format from media art are travelling exhibitions, such as WRO on Tour and the Abandon Normal Devices (AND) tour. These formats are characterized by their flexibility: institutions participating in the tour can adapt the works presented to their space or programming, creating a degree of local embeddedness. This model offers interesting possibilities for the immersive sector, especially given that the technical and spatial conditions for installations often vary widely.

Another relevant example within the European context is the European Media Art Platform (EMAP), which grew out of the EMARE programme that began back in 1995. Within this European network of media art institutions, artists are selected for production residencies at partner institutions. The resulting new works then tour other institutions within the network. This model offers an integrated approach to research, production, presentation and distribution, and utilises shared resources, knowledge and infrastructure.

Agencies
The agency model may also offer perspectives for IX. In traditional visual art, the role of an agent focuses on representation, mediation and positioning of artists. As also discussed in section 1.4, attempts have also been made within media arts to implement such a model. Agency initiatives in the past by, for example, V2_ (Rotterdam) and iMAL (Brussels), ultimately proved unsuccessful. However, the agency of iii (Instrument Inventors Initiative, The Hague) persists. Possible explanations for this success are that iii has a highly developed networking function, and a very active involvement in European projects within the framework of Creative Europe. In addition, iii works structurally with a wide range of partners and knows how to strategically position its artists in diverse contexts.

Encapsulation
Another interesting strategy from media art practice is discussed in A New Era for the Distribution of Media Art, encapsulation: the packaging of software within an independently functioning technological object. Here, instead of a stand-alone software file, the work is delivered as a pre-installed experience on a specific, ideal hardware configuration. The boundaries of the artwork thus shift from a purely digital file to a tangible object. Additional advantage: in the commercial art world, this contributes to the work's marketability.

For distribution of certain types of IX work, encapsulation offers interesting leads. It would make it possible to significantly reduce the complexity and logistics surrounding installation and maintenance. Because a work in that case is then offered as a fully prepared and ready- to-use system, it reduces the amount of technical labour and resources normally required for presentation. This makes the approach attractive to institutions, and also opens the door to distribution models based on rental.

Other, less complete forms of encapsulation are emulation: emulating the functions of a particular computer system to make old software or hardware work on modern systems, and virtualisation: creating virtual environments and experiences, often using technologies such as virtual reality (VR), augmented reality (AR) and interactive digital installations. Gaby Wijers indicates that LI-MA is already working on this: "We do a lot of emulation and virtualisation in preserving media art, but I don't think that's good enough yet for very large immersive installations. You do have all the equipment, but to keep it running continuously also requires a lot. Still, it would be a good case study."

Of course, practical issues remain even when encapsulation and emulation are applied, for example with regard to transportation and storage of the physical systems. The approach does offer creators reassurance that their work will be shown exactly as they intended - an important safeguard of artistic integrity when distributed outside the original presentation frame.

In the IX industry, this is referred to as 'suitcasing': the act of adapting a work into a package of installations that can be easily transported and set up and presented. Marieke Nooren explains that in this practice, technical producers are becoming increasingly important because creators usually lack the specific knowledge needed in-house. She notes, "How do you make it a good package so it can be transported properly? You often don't think about that while making a project or presenting in the Netherlands. Technical producers who understand how IX works and can put that down well, and who have experience with cargo, international transport, and the like, are crucial."

The Emulation as a Service model (EaaS) developed in digital art uses encapsulation as a logistical solution. It is scalable and cost-effective and is primarily used within heritage institutions. EaaS makes it possible to make obsolete software, operating systems, or digital environments accessible through modern systems - usually through a Web browser in order to preserve and make accessible digital artifacts such as old websites, video games, software, or interactive artworks. EaaS is particularly aimed at reducing the complexity and duplication of effort involved in setting up emulation environments for technically obsolete files and software. This significantly simplifies the installation process, while providing access management capabilities.

In addition, EaaS makes it possible, through clear contractual agreements - for example, on the use of physical user interfaces and aesthetic constraints - to keep the presentation of the work in line with the original artistic intent. This streamlined approach can also provide opportunities for developing revenue models around distribution.

Digital distribution: NFTs and social media
For the past decade, the digital world has been under the spell of the NFT, the Non-Fungible Token. This is a unique digital certificate that represents ownership of a specific digital or physical item, such as art, music, videos, or even a tweet. Each token is stored and made trackable through blockchain technology. Because each token is unique and non-exchangeable, they can serve as proof of authenticity and ownership in the digital world.

Although the NFT hype now seems to have blown over, this system offers starting points for developing new forms of licensing (see also 3.7). On very different NFT platforms, art collectors typically became not "owners," but gatekeepers to access a work: a form of patronage where resale rights are granted, but without control over the circulation of the work.

In addition, the use of social media is an interesting way for creators to generate attention for their work on the one hand, and to break the traditional economy of scarcity from art on the other. A New Era for the Distribution of Media Art describes how Dutch artist Harm van der Dorpel uses this in his work. For example, in 2016 he offered two versions of his work Autobreeder: A "master version" as an encapsulated software/hardware version of 2 pieces and, in addition, a light version in an edition of 100 pieces as a tokenized work on blockchain. Here, the token acts as a digital certificate of ownership.

Such a dual approach works well because the creator makes a clear quantitative distinction between the two versions, in a so-called trickle-down system that starts with the "real thing". This also allows them to reach multiple audiences: traditional art collectors but also people specifically interested in the digital world, whether for investment reasons or not. For the world of IX, the overlap with the realm of digital and media art provides much recognition and certainly inspiration.

3.4 Games

"In the old days, at least ten, fifteen years ago, a game came out on a box. Then it slowly became available digitally. That was pretty new then, but now it's the norm. It has become much easier, although people don't always realise that they actually depend on the platform offering the download. After all, that can say, "Unfortunately, the download is no longer available. You bought it, but it's no longer there. On the other hand, many people trust that everything can be done digitally, because they don't have a hundred boxes at home and can always reinstall it. That's a big change. In addition, it is now almost standard for a game to be expanded after release with DLCs (Downloadable Content, updates to a game that are made available after the original release, such as new levels, characters, storylines, weapons or cosmetic modifications). That way you keep gamers' interest and you can sell them additional content later as a 'deluxe version' of the game."

Yannis Bolman

Online Store Fronts
As the above example illustrates, the gaming industry has found a great way to retain its target audience for a longer period of time. This is extremely relevant as far as online distribution practices are concerned.

Where games were once sold physically in stores, the industry has rapidly evolved into a primarily digital ecosystem. Online platforms such as Steam have taken a dominant position within this landscape. With more than 130 million active users, Steam has become the largest online distribution channel in the world.

Artistic productions are only a marginal segment in this. They are very rarely highlighted or actively promoted by platforms such as Steam, in part because they typically lack the blockbuster stature of more commercial games. Yannis Bolman notes that, partly for this reason, it has become increasingly difficult to become visible on such platforms: "The selection has become so huge. And if you receive some attention, you must be happy if it lasts more than one or two days, because there is always something new."

Within the traditional game distribution model, publishers play a central role. They take responsibility for all steps in the distribution chain: from development and marketing to sales, community management and ongoing content updates. Games are increasingly approached as services rather than closed products. This is reflected, among other things, in working with game "versioning" and Downloadable Content (DLC), where a game is kept constantly alive through regular updates, new features and temporary extensions. It not only contributes to the shelf life of the product, but also ensures renewed involvement, re- engagement, of the audience.

This is key to the revenue model: consumption and sales depend on replayability. Bolman explains how game developers play with this in relation to sales, up to a certain limit: "You look at how a title performs. If it's not performing well enough, we often say: let's do an update, add more content, so the mill keeps running. But if it's really not doing well, publishers drop out, and so do we usually. Then it's simply not worth continuing to build."

Episodically released games also contribute to re-engagement, provided a long-term dedicated team is available. Such strategies could also work for immersive productions, where creators use a temporary "special experience" or extensions to reinvigorate the work and keep audiences engaged. Such temporary content keeps players coming back, potentially increasing user numbers and generating more revenue. AR projects on mobile platforms could find this strategy relevant. VR titles could also make use of this system. A great example is the strategy of American studio Tender Claws, which temporarily expanded their VR app The Under Presents with an in-game live theatre show the Tempest, not only boosting their in app sales, but also generating a second income stream with ticket sales for the live performance.

Community Engagement
Adding a social or live dimension to content through, for example, online interactions or forms of community engagement, as happens in gaming in the community platform Discord, are interesting practices whose potential value to the IX sector could be explored. This does require specific skills around service and service delivery from the producer or other team members.

Cloud based gaming
In addition, it is interesting to look at the cloud-based gaming model. This is similar to the EaaS model described in 3.3. Games hosted in this way in the cloud run on powerful remote servers rather than locally on the user's hardware. The best-known cloud game streaming platforms are XBox Cloud Gaming and GeForce Now. Users typically pay via a subscription model, where they get access to the games, while server capacities are efficiently allocated. This model provides inspiration for immersive work, especially when it comes to screen-based or digital projects that can be hosted remotely. A subscription model could contribute to a more structural and scalable revenue model within the IX sector.

Independent distribution
An inspiration for an alternative to the dominant distribution channels is the platform itch.io. This platform, founded in 2013 by programmer Leaf Corcoran, is inspired by open models also used by the music platform Bandcamp (see also 3.5). It allows creators to offer their games on their own terms. They decide the price, distribution method and content of their product pages. In addition, itch.io supports organizing game jams and offers a pay-what-you-want option, which has made the platform popular with independent game developers. For XR and immersive creators, a similar platform - or using itch.io itself - could be an interesting route, especially when it comes to niche content that falls outside mainstream storefronts.

Data collection
Section 2.5 indicated that there is little systematic data collection and statistics available in the immersive industry. In the gaming industry, the use of data analysis, benchmarking and statistics is well established. Parties such as Newzoo are leading the way when it comes to market insights, usage behaviour and sales figures. Such information helps game developers optimize their strategies and extend product lifecycles. Such data can also be used to implement sustainable revenue models and demonstrate impact to funders and partners.

Preservation
Games also run into similar technical limitations as immersive works when it comes to archiving and preservation. Technological obsolescence, dependence on specific engines or hardware and the volatility of digital formats make it difficult to keep games (and immersive projects) accessible in the long term.

3.5 Music

For IX distribution, the structure of the music industry may also offer examples of how artistic productions can reach their audiences through various channels and intermediaries. In particular, the system of bookers and agents, hybrid online/physical distribution models, and approaches to archiving may provide valuable leads.

Intermediaries
In the music industry, booking agents and bookers act as essential intermediaries who make the connection between artists and venues, festivals or clubs. Agents handle the practical aspects of gigs, such as scheduling and contract negotiations, while managers play an important role in promotion and networking, and creating "brands" around artists. Bookers work for multiple presentation venues (venues, festivals) to connect the right act to the right stage.

This system in which different people work closely together creates a professional infrastructure in which artists can concentrate on their creative work, while agents, bookers, managers and other parties take care of the commercial and logistical side. Vevi van Vliet emphasizes the collaboration between all those parties: "I think it's interesting to look at the music industry. There, the work is central to the artist, but there is a whole team around it: the distributor, the label that invests because it believes in the product, and PR and marketing. The artist is leading, but the knowledge and expertise are all at the table, contributing together, and getting something out of it."

For the immersive sector, the introduction of specialised distributors or "immersive bookers" could be a game-changer. Such bookers could act as a link between creators of XR experiences and presentation venues, such as museums, theatres, festivals and pop-up venues. Not only could they take on the organisation and logistics of screenings, but also actively build networks and use their expertise for audience development and marketing.

Agents, as in the arts, could take multiple works or creators under their wing to secure presentations. Developing recognizable "brands" for IX creators and productions can also help strengthen audience loyalty and increase commercial opportunities. This way of working could unburden distributors and makers, allowing them both to focus on what they do best. The question, however, is how this structure could become profitable.

Combination of distribution models
Another interesting takeaway from the music industry is the differentiation between physical and digital distribution, and leveraging different economic models within the same ecosystem. Platforms like Bandcamp illustrate how musicians can offer their work without an intermediary in various forms: from free streaming and paid downloads to premium collectibles such as vinyl records and special merchandise. Bandcamp also allows artists to reach their fans directly through their artist page and through mailings.

This model combines accessibility (digital downloads) with a market for exclusivity (merchandise, vinyl), ensuring broader engagement with different types of fans and buyers. With this, the music industry shows that it is possible to strike a balance between mass distribution and creating added value by capitalizing on the need for exclusivity (creating "scarcity") and special experiences.

It is worth investigating what the value and feasibility of this type of merchandising could be within IX. For this, a business-minded producer and marketing strategist on board the project team are indispensable. XR content is often seen as technically and logistically complex, so digital distribution via streaming or downloads is not always a good option, even if the 'customer' has a headset in their home. Nevertheless, new forms of 'digital collectibles' and exclusive experiences can be developed, for example through NFTs, licenses for exclusive screenings or limited edition virtual content (see also 3.3). This may create an economic space in which creators develop alternative sources of income in addition to broad accessibility.

The other side of the coin is the danger of "spotification" - a term that refers to the dilemma of digital art forms becoming dependent on platforms such as Spotify, with revenue distribution highly unfavorable to creators.

Multiple interpretations
A third interesting aspect from the music sector, is the way in which musical pieces are considered dynamic and multiple interpretable works, according to the Digital Catapult report The creative immersive content lifecycle: from distribution to restoration. Compositions are played by different artists on different stages, in different versions and performances, yet remain the same work. Also, the fact that music is often offered at different scales - from small local venues to international festivals - shows how a distribution model with different layers and segments can work. For immersive works, this means making room for small-scale, experimental presentations alongside large-scale productions.

Communities Finally, the development of communities and fan bases within the music industry deserves attention. Music fans organize themselves in fan clubs, online forums and at live events; this is an important driver of sustainability and growth. For IX, building such communities around creators and projects can provide a more stable outlet and more organic distribution, see also for example the community building for games in Discord as discussed in section 3.4.

3.6 Immersive distribution models

In the previous sections, distribution models from various other sectors have been reviewed to see in what ways they can serve as inspiration for the immersive sector. In this section, we look at initiatives and distribution models specifically tailored to exhibiting IX work.

A common denominator for many of the initiatives mentioned below, is the emphasis on joining forces and titles, and networking and collaboration. Individual works often lack sufficient scale or continuity to circulate independently. Group presentations and joint distribution strategies, such as at festivals or traveling exhibitions, increase their presence.

Cooperation to strengthen infrastructure
Initiatives have emerged in various places in Europe that contribute to strengthening a shared distribution infrastructure. Section 3.3 already mentioned the European Media Art Platform (EMAP), a collaboration for media art within Creative Europe, and section 1.3 mentioned The Festival Collection, an initiative of several A-list festivals.

The Galaxy Network, an initiative of France's Diversion/Cinema, focused on simultaneous presentation of VR top selections in multiple countries, through a network of cultural partners: museums, festivals, libraries. The initiative had at least two editions (2021, 2022) and was part of Diversion's broader mission to build a professional international distribution infrastructure for VR. It is unclear to what extent Galaxy Network is still active today. At least the underlying principles - joining forces, technical standardization, cross-border programming - live on in Nu:Reality, the collaboration between Cassette and Diversion/Cinema.

Another French initiative, Unframed Collection, focuses specifically on museums and institutions with permanent exhibits. Through a cloud-based platform, these institutions can choose from a library of immersive works. The software can be installed locally on their own headsets, after which institutions can access the collection through a credit point system. Licences are offered on a "pay per minute" or flat fee per title basis, providing flexibility and making exploitation easy. Unframed thus borrows from both the VOD system of streaming services and cloud-based gaming.

In the UK, four immersive arts organizations - Watershed (Bristol), FACT (Liverpool), Box UK (Cardiff) and Broadway Cinema (Nottingham) - have joined together in a British Council-funded network. Amy Rose explains how this collaboration is gradually forming: "Initially, there are four venues in the network, but the plan is to grow it: six in the second year, ten in the third, and hopefully more beyond that. We're trying to figure out if we can make decisions together, and what that would actually mean. For starters, can we tour work between the four venues? If so, how would that work financially? What does the curatorial approach look like? What about marketing, or how we care for audiences? These are all big questions.”

In Italy, Venice Immersive has initiated an international think tank that brings together festivals, producers, distributors, funds and presentation venues to reflect on the future of distribution. As yet, this has not led to concrete results. Last year's focus was emphatically on improving the route to location-based screenings: Location-Based Events (LBEs, see section 1.3), in which one work occupies a fixed location for several months, such as a museum, gallery or special venue. Britain's Marshmallow Laser Feast, incidentally, has succeeded in creating such LBEs with several titles.

It is striking that the existing collaborations do not yet cover the full breadth of the (potential) life cycle, but each time focus on one aspect of distribution. It would be good to set up a use case to explore whether collaborations could be more powerful across the breadth.

Group presentations
The first European group exhibition of VR work took place in 2017 at HeK (Haus der elektronischen Künste Basel): The Unframed World. There are now also travelling exhibitions and festival programs in which IX works are part of a larger whole. The Alternate Realities Exhibition, initially part of Sheffield Doc/Fest 2019, toured eight cities in the UK after the festival. Venice Immersive also toured 16 cities in 2021 within the Venice Immersive Satellites programme with several titles from the selection, including in Amsterdam's Eye Museum. This programme, incidentally, has been discontinued due to licensing issues.

Distribution can also be done as part of an existing (collection) presentation. The VR work Mona Lisa: Beyond the Glass was presented as a "complement" to the iconic artwork. Adding a VR experience to the painting created a new layer in the audience experience, without the need for a whole separate setting.

Cinemas
Initiatives are also emerging in the Netherlands that attempt to build bridges between creators and audiences. The aforementioned Nu:Reality focuses on film theatres and offers packages with curated content, marketing support, hardware and training for staff. Initiator Babette Wijntjes states that Nu:Reality operates primarily as a platform that facilitates collaboration. Distribution tasks are indeed carried out, such as marketing and material provision, but the main focus is on creating an ecosystem in which content can do optimal justice. No work is distributed outside its own platform. Wijntjes: "We call ourselves a platform for all kinds of collaborations, as a bridge between makers and audience. Does that include distribution activities? Yes, like marketing, providing material and curation, absolutely. But it's actually broader than that. It's not like we can distribute a lot of other films outside that platform. It has to fit within that platform."

There are examples of IX works being shown in conjunction with a film or cinema tour, as, for example, Notes on Blindness (Ex Nihilo, ARTE France, Arnaud Colinart, Mark Archer, 2016). The immersive experience then acts as an extension or deepening of a linear narrative, travelling with it through cinemas where the audience is already present.

Home distribution
Canada (PHI), Belgium (Bozar) and Luxembourg (LuxFilmFest) are experimenting with forms of home distribution through so-called VR-to-go models. Here, like at a library, users can borrow a headset with preloaded content. This model was rolled out in Britain in the past through VR Arcades, such as the defunct Otherworld, which could also offer artistic content through this route. Another good example of distribution for individual use is Radiance VR. This German initiative has a database of more than 120 artistic XR works, by more than 180 creators from 38 countries. Initiated from academic research, it aims to create visibility for artistic XR, and acts as a kind of agency for the connected works. Users can browse the titles via the Radiance VR app.

Sara Tirelli comments: "I think this is an interesting example of indie-style distribution. Radiance VR has been a real pioneer. It holds a huge collection but operates more like an artist-friendly agency, without taking a commission."

In France, Astrea is a notable example. This company focuses on both home and location-based screenings. Astrea is not only a distributor, but also invests in "localisation," adapting both language and cultural elements to better distribute a work in other countries; this is done particularly for the Asian market (Korea, Taiwan, Japan). It also applies pricing models that fluctuate by market and season, using strategies from the gaming and app industries.

Finally, it is also worth mentioning VeeR VR. Since 2016, this VR content platform from China's Velocious Technologies offered a library of more than 10,000 titles including (award-winning) artistic VR productions. Companies and cultural institutions could publish their VR projects globally through VeeR, including in-app purchases or ticketed access, and provided a low-threshold platform for individual VR creators to publish their work and generate revenue. As of 2023, however, it has ended its global online services, and has since focused purely on the Chinese market.

Metaverse
It is valuable to look at social VR platforms such as VRChat, which now have a vibrant community of world builders and creators. However, publication and distribution of works within these platforms is currently still done without payment: there is no built-in ticketing system or standard revenue model, and due to the legal complexities involved, this is not expected to change anytime soon. France's VRROOM tried to solve this with its own platform and ticket sales for major concerts and festivals, including a Jean-Michel Jarre show and a collaboration with SXSW. While this initiative ultimately failed, it does show that there are opportunities in developing new forms of paid distribution within social VR environments.

Creators would do well to already take into account when developing their work the possible distribution possibilities within this type of environment, and to anticipate how interaction, scalability and technology within it relate to their artistic ambitions. Other metaverse promises such as Mozilla Hubs and Neos VR have since been discontinued or are no longer supported.

3.7 Licensing models

Licensing is a legal instrument that allows the use of intellectual property to third parties under certain conditions. In the context of IX, licensing plays a crucial role in enabling distribution, reuse, archiving and long-term access. At the same time, in the IX sector the processes around licensing are not yet well standardised, also there is a lack of guiding best practices.

For creators and producers, it is essential to think about possible licensing models early on in a project. After all, the way a work circulates later depends largely on the legal and production choices made at the outset. For example, several models are possible: a flat fee licence, where a fixed fee is paid for use of the work; revenue sharing, where revenue is shared based on use; or a combination of both, such as a minimum guarantee (MG) plus revenue sharing. Each of these models has its own administrative, legal and communication challenges.

Currently, there are no formats or standards on payments for presentations. In recent years, the Netherlands has seen much research on fair practice pay. In the visual arts, the so-called calculation tool for artists' fees has been used for some time. Since 2025, this calculator has been renewed, in favour of IX works: now also setup and dismantle hours are included, which previously were not automatically included in calculating a minimum fee. For applications to the Mondriaan Fund, applicants must include the calculation via the calculator in their budget. This calculation tool is not yet standardly used for calculating the fees for IX presentations.

Many presentation venues work with standard fees or screening fees taken from the film sector. There, a screening, i.e. the delivery of a film file, usually yields between €150 and €300. Such amounts are not adequate for the presentation of an IX work. On top of that, the ownership structures, conventions and expectations surrounding intellectual property rights can vary greatly from country to country. In Canada, for example, the National Film Board (NFB) (which, incidentally, stopped producing IX since 2024) typically owns all rights to the works it produces. In the Netherlands, it is common for a creator to transfer rights - for a fee - to the producer in question. This means that responsibility for the longevity and distribution of a work also falls to the producer.

The question of who has control over the life cycle of a project - the creator, the producer, or another party - has direct implications for the licensing process. Therefore, it is important to work with clear standard contracts, clear definitions, and transparent intellectual property (IP) agreements from the start of a project. What exactly is being licensed, is it about a particular version of a work, or about the possibility of adaptation? A good working relationship between the licensor and licensee is very important here, especially when a work needs to be re-presented in or adapted for a different context.

Distributors in media art and digital art have long been working with "versioning" and a whole range of licence forms tailored to different situations: "private," "public," and "educational". This diversification would also be applicable to the IX sector: after all, a work can be site-specific, exist as an encapsulation, as a mobile version, web version, or desktop iterations.

Also, licensing is crucial to the future-proofing of a work. If creators want to continue with new projects, the legal framework around older works must be clear so that they can be archived, studied, or reactivated by museums, research institutions, or curators. Without proper licensing agreements, sustainable access, preservation and reuse is virtually impossible.

Caspar Sonnen explains how IDFA DocLab, together with theatre company Ontroerend Goed, is developing a performance that can be distributed worldwide, but without actors: "They simply send a cardboard box with contents and instructions to a theatre, and the audience creates the performance itself. Talk about distribution. But they are now left with the question: how do we make sure this idea is not stolen or copied by other theatre makers? Because that has already happened to them once, when an earlier performance suddenly started travelling through China under a different name. So IP, subsidised art and commercial interests, in that free, non-money-generating market of radical artists is extremely relevant information for the commercial tech world."

3.8 Findings: hybrid strategies

The analysis of distribution models from film, performing arts, digital arts, games and music shows that no sector offers a ready-made blueprint for immersive distribution. Instead, the solution lies in strategically combining elements from different domains into hybrid strategies adapted to the unique characteristics of immersive work. In doing so, collaboration and joining forces - between creators, institutions and countries - is proving to be an essential success factor in all the sectors studied.

Specific challenges for IX
Immersive work has characteristics that require unique distribution developments:

  • Its hybrid physical-digital nature requires new logistical models.
  • Certain types of work require intensive audience support; this requires different capacity models than traditional art forms.
  • Rapid technological obsolescence requires proactive conservation strategies.
  • The interdisciplinary position between art, technology and entertainment requires new legal and commercial frameworks.

Distribution as integrated process
All sectors studied show that successful distribution begins in the concept phase, not afterwards. The performing arts illustrate this most clearly: creators and programmers decide together from the beginning where, when and for whom a work will be presented.

Essential role of intermediaries and cooperation
All sectors have specialised intermediaries who form the link between creators and audiences. From film distributors to music bookers, professional intermediaries relieve creators and increase reach. For IX, such intermediaries and structures are still largely lacking.

Technical standardisation as a prerequisite
The French development of XR standards and the EaaS model show that technical compatibility is crucial for scalable distribution. Without common standards, each display remains a customised operation.

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