Published in Fortune January 28, 2016

What impact do you feel virtual reality is currently having on the adult entertainment industry?

The industry, as a whole, is excited because, for the first time in a long time, we’re ahead of the curve from an innovations perspective. Right now adult entertainment is the killer VR app. It will remain so for the next year. It will, eventually, be dethroned by gaming; however, VR gaming isn’t there yet. It’s so early, and the VR games available now are rather anemic when compared to today’s most popular console and PC titles. On the other hand, in adult entertainment, if you compare VR videos to non-VR videos, it’s an open and shut case. The difference is undeniable. It’s a leap forward without a shred of ambiguity or doubt.

What have you seen at this early stage in terms of consumers being willing to pay for VR porn (with so much other porn available for free)?

The early adopters, the hobbyists, they’ve been on board since the very beginning. There are no signs indicating that they think the content should be free. They recognize that VR is cutting edge, more complex, and a higher-end product. It’s in a separate category from non-VR porn.

Now, as virtual reality has gone mainstream, has become part of popular culture, we see more and more consumers without a tech background showing interest. It’s happening rapidly, because news and information about VR are coming from so many angles, so many sectors: from our marketing efforts, from Samsung Gear VR promos, from a miraculous story in Miami involving baby Teegan, from everywhere.

And as we see the base of VR consumers expand to include the uninitiated, we’re getting the same signals from them that we’re getting from those early adopters. There is a willingness to pay for it. VR content is rightfully seen as something separate from normal porn, something that is worth a premium.

Does the adult industry use any numbers as an industry in terms of how big it was in 2015? And do you have any idea what percentage you see VR making up of this business 2016 or beyond?

You hear numbers thrown around. Recently I read an article that called it a $100 billion industry. I don’t know where a number like that comes from, though. It’s possible that it’s true, but for the life of me, I can’t figure out where they’re sourcing that data. As far as 2016, I can tell you what I hope will happen. My hope is 5 to 10%. At this point, any prediction, it is like pulling a number out of a hat. We’re all asking the same question right now: what kind of impact will Oculus Rift make when it hits the shelves?

What impact do you see the Qualcomm 820 chipset, which allows head tracking on Android/Cardboard, having on new porn VR experiences?

It’s hard to say as I’ve only read about the 820, and haven’t experienced it. I also don’t know how many Smartphone manufacturers are going to use the chip. If its use is widespread, it’ll have a significant impact on VR porn. The experience on more affordable, gateway devices like Google Cardboard will be richer, more compelling, more fun—closer to the experience of strapping on a Gear VR which is definitely a compelling experience.

Has your company ever explored sex education/sex technique instructional videos in the past?

It’s something we’ve been discussing for a while now, particularly after seeing the sort of things that Cindy Gallop is doing with her MakeLoveNotPorn venture. Having VR as a platform makes the prospect even more intriguing. The immersive nature of VR lends itself to the pursuit and development of educational applications.

Can you explain your vision for these experiences? Is it a series of short scenes focusing on different elements?

I’m seeing a lot of startups these days looking to use VR to help people address and overcome phobias. Fear of public speaking, fear of flying, fear of heights. We’re well suited to address one of those phobias specifically: erotophobia, colloquially, fear of sex. Whether the result of religious upbringing or poor sex ed in our school systems, or something far more sinister, there are a lot of people with a negative view of sex. It’s cliché to even mention at this point, but it still holds true: socially, societally, the exposure of bare breasts is more incendiary, more shocking than people being shot or blown up. That’s insanely irrational. So we’ll try to help people overcome intimacy issues, fears about performance, and beyond.

Will you be developing these instructional interactive experiences for both men and women?

That is the plan.

How do you see this series of experiences potentially expanding the audience for adult VR?

These videos will serve as some consumers’ first exposure to adult VR. We expect they’ll be captivated by how unique the experience is, and become fans of adult VR. My hope is that it inspires more women to embrace the content. Where porn in general is concerned, women complain most about the lack of passion in porn scenes. The performers look like they’re just going through the motions, absent any real emotion. They’re acting, and they’re not acting convincingly, except on the rare occasion when scene partners really do connect on camera. With VR, there’s an immediacy, an undeniable visceral component. That specifically can bridge the gap between what is perceived as fake and what is perceived as authentic.

When and where are you filming these videos?

Most likely we’ll be filming in Los Angeles. This is an ambitious project, so we’ve got to keep an eye on the tech. Nokia’s Ozo is due out in Q1. The prototype of Lytro’s light field rig may be available for rental in Q1. And while we could ignore all the camera options that will be hitting the marketplace soon, and throw caution to the wind and shoot with Oculus DK2 in mind–in advance of the Oculus consumer version hitting the shelves–I’m fearful that we’ll regret doing that, and want to reshoot everything.

Do you have a target release more specific than Q2?

We do not. It’s all about the HMDs and the camera equipment.

What does Kiiroo’s technology add to VR?

The goal with VR is to achieve full immersion, or telepresence. Full immersion must take into account all of the senses. Videos alone have sight and sound covered, but that’s only two out of five. Kiiroo, and the haptic feedback it provides, adds a third, signaling that we’re more than halfway there.