Are hologram concerts the wave of the future? That’s what designers at Digital Domain are hoping after they engineered a hologram of slain rap great Tupac performing with former label mates Snoop Dogg and Dr. Dre at this year’s Coachella music festival.
According to CNN, Digital Domain held a conference call last week to discuss the potential use for more virtual entertainers. Company executives said that concerts in tourist destinations like Las Vegas, Broadway and Branson, Missouri could make sense.
The initial excitement from the Tupac performance caused the stock price of Digital Domain to skyrocket by more than 50 percent. Despite the recent rise in popularity there are still risks with investing in DD, as pointed out by writer Paul R. La Monica on CNN.com.
“But investors who’ve rushed to buy the stock in the past few weeks need to be warned. The company conceded during last week’s conference call that its overall revenue stream so far is relatively small since it has mainly been a company that is hired by Hollywood studios to do work on a contract basis.”
La Monica went on to highlight a trend that should scare away potential investors. Over the past two fiscal years DD has lost $180 million and is projected to lose another $40 million this year. Despite the lack of profit there are still some who believe the investment will pay off in the long run.
When asked about DD’s potential, analyst Tony Wible told CNN, “The Tupac thing is just one spoke on a broader wheel. There will be tremendous demand for more content like that,” he said. “Digital Domain is aiming to be the next Pixar. That may sound ambitious but they have a history of putting
