I'm not so sure about 'tiny.' There is abundant business for PPV events. There are abundant events that people would love to attend if they could allocate the time/travel/money to be there... wherever 'there' happens to be.
Event seating is finite: one butt per seat. Whether that seat costs upwards of $40K for NBA games- as I've seen first hand myself in select games last year- or $50 for less desirable events, only one ticket can be sold for that seat and only one person can sit there.
However, an event entrepreneur could virtualize a front row/courtside/prime seat for the VR many, selling the same seat to many thousands or tens of thousands of VR customers, while still selling an actual seat to a live person too for up to $40K. Obviously VR 'there' doesn't compete with actually being 'there' so the guy who pays $40K still pays $40K to actually be there. However, now the many guys who could never justify $40K and/or just can't be 'there' could virtually attend too for much less expense.
Look no further than existing PPV and/or special sports packages like NFL Sunday Ticket. Those not able to follow their team to all of the games in person may pay the $600 to follow them on a 2D TV screen. MILLIONS do exactly that. What would a segment of those millions pay for a NFL ST VR that can make it seem much more like being at the game? Look around and see fans virtually seated next to you. Look behind you and see lots of fans seated at the game too. Instead of watching the game through a 2D window, look wherever you want, whenever you want and see what someone being there would see. During the TV commercial breaks, watch how the live event fills that time (in person, there's entertaining filler while TV viewers watch commercials).
Got a similar fanatic friend across the country or world? Maybe a NFL-ST-VR offering can sell you 2 VR seats side by side... so that you in Tennessee and they in Tokyo can get as close to being at the game in Las Vegas as possible without either of you paying to fly there, get a hotel, pay up for great seats, etc. You look over at your friend sitting next you (actually in Tokyo), they look over and see your reaction to the big play.
Think about PPV fight fans. WWE wrestling fanatics. Olympics fans. All sports. Broadway show fans who can't make it to NYC. Concert fans who can't make it to the big show. Etc. There is a
TON of this kind of service opportunity.
Why would the promoters/arenas be interested? Again, think about the math. Sell a prime seat for $40K to
one person. Sell a virtual version of about the same seat for $200. Since live > VR, they still get the $40K. But now, without having to allocate an actual physical seat to a live person, they sell maybe 5,000 people. 5K times $200 = $1M. Optimize that VR seating pricing. Maybe a test at $100 per VR seat sells 20,000 people for $2M? Or maybe they "get greedy" and price it at $500 and only sell 1,000 people for $500K. In all such scenarios, they still get the $40K live guy but they add a lot of extra revenue for those passionate enough about whatever it is to pay to virtually attend the show/event vs. only watch through a 2D window (television) if the event is even available at all on television (many desirable events are NOT).
Could there be that kind of added revenue in this? Take a look at what getting to watch a PPV thing like
top boxing matches generates in terms of PPV buys. Now, pessimistically assume that instead of paying to watch on a television, a smallish segment of those numbers pay to feel more like they are there: ringside VR. Let's make it only 10% are fanatical enough to pay for VR seats and a Vpro headset. Looking at a fight like Wilder vs. Fury (#5 on that page) 600K purchased PPV on TV, so 10% would be 60K opt for VR. You pick the price of what they pay. Let's be cheap and assume only $100. 60K times $100 = $6M for NOT selling an actual seat, which can still be purchased by those who are actually at the fight in person... and those (including groups of friends) who would rather watch on television, still pay the PPV rate to watch on television.
Do the same for all of the other PPV events people pay to see. Package up all kinds of other live events already available as add-on packages for a television screen with a VR version.
One-time cost of entry would be this "expensive" headset... and then various VR-PPV packages for whatever kind of thing interests someone. Apple would likely want their 30% off the top for every PPV-VR event (more services revenue). Promoters/arenas could sell a bunch of additional people NOT seats to the big show(s) for even more money. Existing offerings for television viewer could be maintained. Existing sales to actual people willing to pay up to attend live would still sell out. This results in more revenue for everyone involved AND people less able to afford some events in person could have the next best feeling like being there... than only watching on television... or not at all if the event is not available on TV.
I foresee this whole VR services portfolio as clearly as I see super-size screen on demand. If you re-watch the Disney segment of the WWDC presentation, the montage of things to watch includes a bit of what COULD be interested as only ESPN television (basketball game)... but what if it is ESPN VR PPV instead?
This new kind of entertainment service seems like it would be very desirable "middle ground" above a NFL-ST type experience but shy of spending much more money to actually be there for all those who will not pay for $40K seats, etc. Now think back to various rumors about Apple being in the running for NFL-ST, a bigger MLB package, etc. What if they were NOT after television packages but VR variations of the same? NFL could still sell ST to Hulu but then monetize the same content with this brand new NFL service from Apple. MLB could still sell the same TV services but also monetize the same content with this brand new MLV service from Apple. Imagine this launching ahead of NCAA March Madness and offering March Madness VR as an initial VR sports service.
"Think different"