Meta Bets Big on VR With Hollywood Deals, Disney Content, and a Sleek New Headset

Meta Platforms (META) is going Hollywood and offering millions of dollars to film studios like Disney (DIS) and A24 to create exclusive content for its next-generation headset. The device, codenamed “Loma,” blends the look of oversized eyeglasses with the power of a high-end processor that fits in your pocket. It’s a clear shift from bulky goggles toward something sleeker, lighter, and more wearable. To help Loma stand out in a hesitant market, Meta is betting on star power, immersive stories built around familiar franchises that can draw in audiences beyond gamers and early adopters.

Meta’s Learning from Apple’s Misfortunes

According to The Wall Street Journal, Meta’s pitch to producers is clear. Build high-quality episodic or standalone VR content that runs only on its headset for a limited time. After that, producers can sell 2-D versions to streamers to reach a wider audience. This hybrid model helps Meta attract exclusive content without locking out partners from future revenue streams. It is already working with James Cameron’s Lightstorm Entertainment, and Disney is developing a Star Wars experience for Meta Quest.

The strategy marks a sharp contrast with Apple (AAPL), which released the $3,500 Vision Pro without paid content partnerships. Apple relied on in-house productions and existing apps. Meta is taking a more aggressive approach. It is investing in what users will watch, not just what they’ll wear.

Loma is expected to cost less than $1,000 and offer better visuals than the current Meta Quest headset. Its design is closer to smart glasses than to traditional VR goggles. Users will wear the glasses and carry a pocket-sized processor, making it lighter and more portable.

Let’s Talk Numbers

Meta has reasons for this gutsy move. Reality Labs, its division for VR, AR, and smart glasses, lost $17.7 billion last year on just $2.1 billion in revenue. However, CEO Mark Zuckerberg continues to bet that immersive computing will be the next big platform. Meta’s Quest line is still the bestselling VR headset, even if adoption has been slow and mainly limited to gaming.

_{Reality Labs Revenue and Losses: Meta’s VR Division Continues to Operate Deep in the Red. Source: Main Street Data}

The AR and VR glasses market is projected to grow from $45.6 billion in 2024 to over $120 billion by 2033. Meta wants a lead before that wave crests. By locking down premium content now, Loma is setting the stage for competition not just with Apple, but with the future of entertainment itself.

Is META Stock a Buy?

The Street’s analysts see Meta Platforms as a Strong Buy, with an average META stock price target of $697.5. This implies a 1.40% upside.

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