The music industry is exploring opportunities for immersive performances as technology opens up new possibilities. In the wake of the success of ABBA Voyage, new entrants and investors are set to increase the range of avatar-based music productions.

Unit1 Studio, a producer of immersive concerts, said it has pioneered new developments in VFX and AI-enhanced CGI that will bring down costs and speed up production.

“We really see ourselves as a conduit between the world that [an artist] might ...