What Is Virtual Production and How Does It Actually Work?

Understanding the Basics of a Virtual Production Stage

How physical and digital environments blend?

A Virtual Production Stage fuses real-world filmmaking tools with digital environments rendered in real-time. Actors perform on physical sets surrounded by LED screens, which display immersive backgrounds that react to camera movement. These digital scenes are not static—lighting, depth, and parallax adjust live, enabling directors to frame and block as if shooting on location. It redefines the filming process, combining tactile interaction with limitless digital possibilities.

This blend allows for greater control over visuals while maintaining an organic feel. Backgrounds are no longer added in post; they are visible to cast and crew during filming. This eliminates guesswork and speeds up decision-making on set. The result is a streamlined shoot that maintains creative accuracy from pre-visualisation through post-production.

The evolution from green screen to LED volume

Traditional green screen filming demanded extensive post-production. Actors performed against blank backdrops, with digital environments added later—a process often prone to mismatched lighting and awkward eyelines. The introduction of LED volumes marked a shift. These stages use high-resolution LED walls to project dynamic environments that interact seamlessly with real elements on set.

This advancement enables light from the displayed environment to reflect naturally on actors and props, creating a coherent visual tone. Camera tracking ensures that perspectives adjust correctly, enhancing immersion. Virtual production stages now replace the need for far-flung locations or physical sets, offering visual realism with unparalleled flexibility.

Virtual studios

Key elements of a Virtual Production Stage

A functional Virtual Production Stage consists of three foundational elements: a physical stage environment, high-resolution LED walls (or ceilings), and a real-time rendering engine. These components operate in harmony, forming a responsive and flexible space for filming. Unlike static backdrops or green screens, the LED walls serve not just as backgrounds but as active, reactive parts of the environment. As the camera moves, the digital scene shifts with correct parallax, preserving spatial accuracy. This enhances the realism of the final image and reduces the need for compositing in post.

In addition to hardware, the software driving the stage plays a pivotal role. Game engines such as Unreal Engine allow scenes to be updated on the fly. Directors can adjust the environment—changing the time of day, weather conditions, or set elements—with minimal disruption to the shoot. These tools give cinematographers greater creative control, letting them light scenes as they would on location, but with the added convenience of studio conditions. The ability to iterate in real-time also helps align production goals with client feedback far more efficiently.

What is Virtual Production in Practical Terms?

Real-time rendering with Unreal Engine

What is Virtual Production? The core of virtual production lies in its real-time rendering capability, often powered by Unreal Engine. Unlike traditional pipelines where digital elements are composited after shooting, this approach renders fully realised 3D environments live on set. These environments respond instantly to camera input, maintaining accurate perspectives and depth cues as filming progresses. Unreal Engine handles complex calculations in milliseconds, making it possible to capture final-quality visuals in-camera.

The ability to make visual decisions during the shoot transforms the creative process. Directors and production designers can adjust scenes without waiting days for renders. Lighting teams can observe how the digital environment affects shadows and highlights on set pieces. This synchronicity allows everyone to work with the same visual reference, reducing errors and improving continuity throughout production. It’s a departure from conventional pipelines where departments often worked in sequence rather than side by side.

How camera tracking enhances realism?

Camera tracking is crucial to maintaining visual coherence on a Virtual Production Stage. Sensors and tracking systems map the camera’s position and orientation within the physical space, allowing the digital backdrop to move in sync with the camera. This prevents the environment from appearing flat or disconnected, preserving the illusion of depth and physicality. The result is a shot that behaves like it was captured in a real location, despite being entirely studio-based.

Modern tracking systems, such as optical markers or LIDAR-based setups, allow for precise measurements. These tools integrate directly with the rendering engine, ensuring every movement—whether a pan, tilt, or dolly—is reflected in the digital scene. By simulating real-world camera physics, virtual production enables cinematographers to apply familiar techniques while unlocking creative possibilities that would be impractical or impossible on location.

Virtual art department integration

The virtual art department (VAD) plays a central role in designing and building the digital worlds used in virtual production. Unlike traditional art departments that work with physical materials and hand-built sets, the VAD creates 3D environments, assets, and textures using digital tools. These are then imported into real-time engines like Unreal, allowing them to appear on the LED walls during shooting. The environments can be hyper-realistic or stylised, depending on the creative brief, and are tailored specifically for live interaction on stage.

The advantage of integrating the VAD early in production is that it aligns creative vision with technical requirements from the start. Environments are designed with camera movement, lighting conditions, and actor interaction in mind. Real-time previews mean directors can walk through digital sets before filming begins, identifying adjustments before costly shoot days. This also allows stakeholders, from agency creatives to clients, to give feedback on visuals long before the final render, streamlining approval processes and reducing delays.

 

Components Behind a Virtual Production Stage

LED walls and volumes

LED walls are the most visible element of any Virtual Production Stage. These high-resolution panels form expansive screens that display 3D environments in real time. Unlike green screens, they offer accurate lighting, reflections, and real-world parallax, making them more immersive and useful for live-action filming. The volume refers to the combined space created by these walls, often arranged in a horseshoe or dome shape, with a ceiling grid that completes the environment.

These panels emit light that naturally interacts with actors and objects, reducing the need for artificial lighting tweaks in post. The realism they provide enables more efficient workflows and better performance from actors, who can see the world around them instead of imagining it. Advances in pixel density and refresh rates have also improved how these walls handle motion blur, shadows, and fast-moving action—making them suitable for high-end commercials, music videos, and feature films.

Game engine software and asset generation

At the heart of a Virtual Production Stage is the software that brings digital assets to life. Game engines, particularly Unreal Engine, power the environments with real-time processing. They allow creatives to build photorealistic worlds that adapt instantly to changes on set. Assets such as buildings, landscapes, and props are designed in 3D modelling software and optimised for fast rendering within the engine.

Asset generation requires a blend of artistry and technical skill. Textures must be high resolution, yet efficient enough not to overwhelm the system. Props must look convincing from all angles and distances. When done well, these assets contribute to a seamless visual experience that holds up under close scrutiny. The advantage of this digital-first approach is that it supports rapid iteration, where feedback can lead to real-time adjustments without halting production.

Lighting and set synchronisation

Lighting in virtual production must harmonise with both the digital and physical elements of a scene. On a traditional set, lights are adjusted manually to match the location’s ambiance. In virtual production, lighting is controlled in two realms: physical fixtures for the actors and set, and digital lighting within the rendered environment. Both need to be synchronised to maintain visual continuity. If the virtual sun moves, practical lights may need to shift in tandem to preserve realistic shadows and highlights.

Modern stages integrate DMX-controlled lighting rigs that respond to the virtual environment’s conditions. This synchronisation allows directors of photography to craft complex lighting setups with consistency and control. It also enhances realism—reflections and ambient light from LED panels can mimic natural sources, allowing skin tones, metallic surfaces, and set textures to respond appropriately. This integrated approach streamlines lighting adjustments and ensures the final image appears cohesive without heavy post-processing.

How the Process Works from Pre to Post?

Pre-visualisation and virtual scouting

Pre-visualisation (previs) is the foundation of any successful virtual production. It involves mapping out shots, set layouts, and visual effects before cameras roll. Using digital models, directors and cinematographers can explore camera angles, blocking, and lighting scenarios early in the process. This planning tool reduces risk by identifying creative and technical challenges in advance, allowing adjustments without impacting the shooting schedule.

Virtual scouting builds on this by enabling teams to explore digital sets in VR or on-screen before they exist physically. Directors can “walk” through a scene, assess compositions, and coordinate action sequences with stunt teams and crew. This process replaces expensive location scouting and provides consistency across departments. With the entire production team aligned before stepping onto the stage, filming becomes more efficient and purposeful.

Real-time shooting on the stage

Once previs and scouting are complete, filming begins on the Virtual Production Stage. Unlike traditional shoots where adjustments may require reshoots or extensive post-production, changes here can be made live. The LED walls display the background in real time, adjusting to camera movement via tracking data. The rendered environment reacts as if it were physical, offering immediate feedback and allowing directors to make informed decisions on set.

This live feedback loop reduces uncertainty and improves performance. Actors respond naturally to visible surroundings rather than imagining a green void. Directors can reposition cameras, tweak set elements, or alter background features instantly. Because the final look is achieved largely in-camera, the post-production timeline shortens. This also enhances cost control, especially for commercials or episodic projects with tight turnaround times.

Post-production and VFX integration

Even though much of the visual fidelity is captured in-camera, post-production still plays an important role in refining and enhancing footage from a Virtual Production Stage. Colour grading ensures consistency across scenes, while additional VFX may be added to embellish action or fill gaps. However, because lighting, reflections, and depth are already baked into the captured image, the burden on VFX artists is greatly reduced compared to traditional workflows.

This efficiency allows teams to focus on creative flourishes rather than remedial tasks. For instance, adding digital crowd extensions or atmospheric effects can be done without reconstructing the environment from scratch. Editorial teams benefit too—because scenes are rendered live and recorded as high-quality plates, rough cuts can be assembled quickly. This is particularly beneficial for projects operating under tight delivery schedules, such as advertising or branded content campaigns.

Advantages Over Traditional Filming

Sustainability and cost efficiency

Shooting on a Virtual Production Stage significantly reduces the environmental impact of traditional location shoots. Travel, set construction, and waste from physical materials are dramatically minimised. Teams no longer need to fly to far-flung destinations or build elaborate one-off sets. Everything from a cityscape to a desert vista can be recreated digitally and filmed under one roof. This consolidation saves both time and resources.

From a financial perspective, virtual production offers long-term savings. While initial setup and LED stage rental may appear costly, they offset recurring expenses tied to location logistics, transport, and weather-related delays. Predictable shooting conditions reduce overtime, reshoots, and contingency budgets. In short, the model shifts investment from variable to fixed costs, making budgeting more predictable and project timelines easier to manage.

Creative flexibility and world-building

Virtual production unlocks a level of creative control that traditional methods can rarely match. Directors are no longer limited by geography or season—they can shoot a summer beach scene in midwinter or place characters inside entirely imagined worlds. Digital sets can be built to match brand guidelines, narrative themes, or specific shot lists. This kind of flexibility is especially useful in commercial and music video production, where visual identity is paramount.

Because the environments are digital, they can evolve alongside the creative process. Need to adjust the skyline, change the weather, or update product visuals? These edits can often be done without delaying the shoot. For productions with tight timelines or multiple deliverables, this flexibility ensures continuity across campaign materials. It also empowers brands to produce content with high visual impact, regardless of location or season.

Reducing travel and logistics complexity

Traditional productions often face logistical challenges, from securing permits to coordinating crew and equipment across multiple sites. Virtual production eliminates many of these pain points. Everything—cast, crew, equipment, and creative oversight—remains centralised. This simplification streamlines production planning, improves communication, and reduces the chance of location-related delays.

Moreover, fewer moving parts mean fewer opportunities for miscommunication or resource bottlenecks. With the entire shoot housed in a controlled environment, teams can focus on creativity rather than contingency planning. Brands and agencies also benefit from more reliable schedules, reducing the stress and risk that typically accompany live shoots.

Common Misconceptions About Virtual Production

It’s not just CGI or green screen

Virtual production is often misunderstood as an extension of green screen or CGI. While those methods rely heavily on post-production, virtual production aims to achieve final-quality visuals live on set. The environments aren’t added later—they are part of the shoot, viewed and interacted with in real time. This distinction is crucial, as it affects how directors plan, shoot, and deliver content.

Green screens still have their place, especially for certain VFX needs, but virtual production offers a more natural and integrated alternative. Actors interact with their environment, directors see the final frame on monitors, and lighting crews work with the actual tone and mood of the scene. It’s not a replacement for traditional tools but an evolution that bridges practical filmmaking and digital flexibility.

Accessibility for a range of budgets

Another common belief is that virtual production is reserved for big-budget feature films. While early adopters were mostly major studios, the technology has become increasingly accessible. Modular stage setups, smaller LED configurations, and advances in software now allow projects of varying scales to leverage virtual workflows. Commercials, music videos, and even social-first content can benefit from the same efficiencies.

Studios offering virtual production as a service provide tailored packages to match different creative needs. Clients can hire stages by the day or week, with flexible access to prebuilt environments and technical teams. This makes the approach viable for brands aiming to maintain high visual quality without overstretching budgets.

Skillsets required

Operating a Virtual Production Stage requires a blend of traditional filmmaking expertise and new technical skills. Directors of photography still apply the same principles of composition and lighting, but now collaborate with virtual art departments and real-time rendering technicians. Camera operators work alongside tracking specialists, and set designers collaborate with 3D asset creators.

This collaboration opens up opportunities for upskilling across departments. Traditional crew members gain exposure to digital tools, while technologists become familiar with creative processes. It’s a hybrid model that rewards flexibility and innovation, and one that’s becoming standard practice in modern production environments.

Real-World Uses of Virtual Production Stages

Commercials and branded content

Virtual production is particularly well-suited to commercial campaigns, where fast turnarounds and strong visual identity are essential. Brands can shoot multiple locations in one day without leaving the studio, ensuring content aligns with seasonal themes or specific messaging. Backgrounds can feature brand elements, animated graphics, or stylised effects that reinforce campaign goals.

Agencies benefit too. Clients can preview and sign off on environments during pre-production, reducing revisions and delays. Campaigns for television, social media, and digital platforms can be delivered in parallel, maximising output from a single shoot.

Episodic television and feature films

Long-form storytelling thrives on consistency, and virtual production helps maintain visual coherence across episodes or scenes. Sets can be reused, extended, or modified without starting from scratch. If a key location needs to appear in multiple scenes across different episodes, the environment can be saved and reloaded with precision.

This consistency also supports complex productions where timelines and creative briefs shift frequently. Directors can pivot mid-series without compromising visual continuity, and producers can plan more effectively knowing that location variables won’t derail schedules.

Live events and immersive experiences

Beyond screen-based content, virtual production powers real-time environments for live broadcasts, award shows, and immersive theatre. These events often require dynamic backdrops that respond to cues, movement, or audience interaction. Virtual production stages make it possible to switch settings seamlessly, sync visuals with music, or integrate augmented reality in real time.

This flexibility supports high-impact experiences that would be logistically difficult or financially impractical using traditional stagecraft. Whether for a fashion launch, music performance, or live-streamed product demo, virtual production delivers a level of polish that keeps audiences engaged.