Industry Insights: Finding the right balance between physical and virtual sets

As LED displays, real-time graphics and virtual production become standard parts of studio design, broadcasters are rethinking how physical and digital elements work together on camera.

The question is no longer whether to build a physical set or create a virtual one, but how to combine both in ways that support talent, storytelling and day-to-day production.

In part two of this three-part Industry Insights roundtable, broadcast vendors and scenic designers explore how LED-heavy environments are changing studio architecture and content creation. They also examine where physical spaces continue to provide stronger continuity and emotional connection, where virtual environments offer greater flexibility and how lighting, tracking, lenses and compositing affect visual realism.

Their responses point toward hybrid studios designed as cohesive production environments rather than collections of disconnected technologies.

Key takeaways from this Industry Insights roundtable

• Hybrid studios gain ground: Designers are combining LED displays and virtual elements with physical scenery to create depth, flexibility and a more natural on-camera environment.
• LED requires integration: Display surfaces must be considered as part of the overall studio architecture, branding and content strategy rather than added as standalone visual features.
• Physical space builds connection: Practical environments continue to provide spatial continuity, natural performance, operational consistency and stronger emotional connections between talent and audiences.
• Virtual environments add flexibility: Digital sets allow broadcasters to adapt a single studio for multiple programs, brands and storytelling needs without rebuilding the physical environment.
• Visual continuity demands precision: Lighting, color, camera tracking, lens data, reflections, shadows and compositing must remain aligned for physical and virtual elements to appear as one coherent space.

How are scenic design approaches evolving as LED-heavy environments become more common?

Miguel Churruca, marketing and communications director, Brainstorm: LED walls are quite common now in television sets, but they are often visual aids or complements rather than an integral part of the set design. LED walls need to be taking into account in the global design of the channel’s branding, deciding which content and in which format should be displayed, either if it is just simple graphics or videos, AR elements, XR or a combination of all. So, designing graphics and other content for the LED wall is now another part of the integral design of the set, as the LED volumes don’t have fixed resolutions of aspect ratios, so the content must be created with this in mind.

Caroline Aldridge, VP and COO, Broadcast Design International: There are so many varied uses for LED displays in large studios. We blend set architecture with dynamic content which allows a studio to shift instantly between branding, storytelling, and different program looks without rebuilding the set. We’re also using varying display resolutions and placement throughout the studio to create depth, dimension, and a more natural on-camera feel.

Nic Jensen, integrated marketing manager, TVSetDesigns.com: We’re seeing more hybrid environments that combine LED video walls with physical scenery instead of relying entirely on one or the other. Practical set pieces, including desks and architectural elements, create depth and help reinforce a sense of realism on camera. Physical scenery also allows you to extend the environment without ballooning costs and complexity.

Larry Hartman, senior design director, Jack Morton: Clients are often starting the conversation, leading with integrating immersive LED spaces into their new designs. Our preference is to create hybrid studios where a portion is physical, and the LED volume is integrated into the overall design. That way, both the camera and talent can react to concrete elements as well as digital ones. The goal becomes how to best incorporate the LED surfaces into the total scenic environment. The screens become dynamic surfaces that can be used to render architectural finishes and views, as well as informational graphics.

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Where does physical space still outperform virtual environments in storytelling?

Tim Saunders, president, Broadcast Design International: A physical studio environment enables visual and storytelling continuity, as well as establishing the physical characteristics of your newsgathering tools. For example, you can toss to your weather center and showcase your trusted meteorologists at work gathering radar data points, wind and precipitation data to bring your very accurate storm forecast to light.

Ricardo Barros, COO, wTVision: Physical space still outperforms virtual environments when human presence, spatial awareness and natural performance are central to the story. But in today’s studio workflows, the real value comes from how accurately that physical space can be extended, with reliable tracking, rendering and production control keeping graphics, virtual elements and live cues synchronized in real time. The strongest productions are not defined by choosing physical or virtual, but by combining both with enough technical precision for the viewer to experience them as one coherent environment.

PNic Jensen, integrated marketing manager, TVSetDesigns.com: hysical environments still outperform virtual ones in consistency and ease of day-to-day operation. A physical set can be used without the specialized technicians and ongoing technical support that many virtual environments require. In many cases, physical spaces beyond a lower upfront cost also offer lower long-term operating costs through reduced staffing demands, maintenance, and energy consumption.

Andre Durette, executive design director, Jack Morton: For me, whether it’s a broadcast environment or an experiential space, physical environments still have a unique advantage when it comes to creating emotional connections. You’re engaging all of the senses, the scale, the atmosphere, and the energy of the people around you, which creates experiences that people remember. Virtual environments are incredibly powerful, but when the goal is connection and lasting impact, physical space is still hard to beat.

Where do virtual environments succeed?

Miguel Churruca, marketing and communications director, Brainstorm: Virtual environments are about flexibility and cost-effectiveness. Users now use virtual technology to enhance storytelling while increasing sustainability by reducing building costs and re-usage of real state. This means that being able to use a single space for different programs, with minimal set up time and props, optimizes operations significantly, and if we add AR and real-time graphics content, the results can mix hyperrealism with enhanced storytelling.

Tim Saunders, president, Broadcast Design International: Virtual environments excel at two ends of the storytelling spectrum. A simple one or two person tightly shot vodcast or a visually massive immersive environment. A few recent examples of visually massive would be the weather storms (tornados, hurricanes and storm surges) enveloping the Met with waves and other weather effects not possible on a physical set.

Alex Roriz, SVP, solution-market strategy and global partnerships, wTVision: Virtual environments succeed when they create context, flexibility and visual depth that would be difficult or inefficient to achieve physically. They allow broadcasters to adapt a studio to different shows, competitions, editorial moments and brand identities, while also opening space for data, AR, sponsorship and branded storytelling layers that can evolve without rebuilding the physical set. The key is to design them as production environments, not just as impressive backgrounds, so every virtual element serves the story, the format or the commercial opportunity.

Jason Metcalfe, business manager, Crystal LED, Sony Electronics: Virtual environments excel in complex storytelling, where many topics often need supporting context, such as news and sports. Virtual productions can integrate multiple data points, graphics, and even remote participants seamlessly. These elements make content more engaging and easier for audiences to understand by adding context through dynamic visuals, cutaways and interactive elements. Virtual sets also allow greater flexibility, enabling multiple types of programs to be produced from a single space.

Gemma Campbell, manager of creative services, EMEA, Disguise: Virtual environments succeed when they stop feeling like gaming technology and start functioning as practical, flexible storytelling spaces. The real value comes from their ability to adapt quickly and support production demands within a single workflow. Beyond the visual design itself, there’s also the complexity of programming timelines, integrating control systems, etc., but having to ensure it’s camera ready, performs reliably and your failover plans are rock solid under broadcast conditions.

Larry Hartman, senior design director, Jack Morton: The goal used to be creating virtual environments so convincing that viewers couldn’t tell that they weren’t real. Today, audiences accept that digital backgrounds and augmented elements are part of the experience. Success is less about “fooling” viewers and more about supporting the story and the talent. If the virtual design makes the talent feel dwarfed or out of place, or if it distracts instead of complements, it has failed. The best environments help to tell the story.

Carol Bettencourt, VP, marketing, Chyron: One area is measurable cost savings over a physical set. If you want a certain look, and you consider the cost of building a physical set, if you can recreate that look virtually you net hundreds of thousands of dollars in savings. Or, for the same spend as one physical set, you could have several virtual sets. The other area where virtual environments succeed is when they are actually a part of entertainment. One recent example is a set that appeared to be in outer space for an esports event.

What challenges arise in maintaining visual continuity between real and virtual elements?

Jason Metcalfe, business manager, Crystal LED, Sony Electronics: Maintaining visual continuity between real and virtual elements is challenging across several factors, including lighting, color, camera choice, and set design. Achieving a seamless blend requires careful coordination between on-set production teams and virtual environment designers. On-set art direction and production must understand the virtual side and vice versa. 

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Nic Jensen, integrated marketing manager, TVSetDesigns.com: Lighting is one of the biggest challenges in convincingly blending real and virtual elements, especially when balancing physical scenery, talent, and digital environments. Reflections, shadows, and lighting colors all have to interact consistently or the illusion quickly falls apart. Virtual environments are also prone to unrealistic conditions and odd vestiges that physical sets by nature avoid, which can make productions feel artificial or disconnected.

Kuban Altan, co-founder and CTO, Zero Density: One key challenge is the precision of tracking data and the lens profile attached to it; if the camera tracking and lens profile is not sensitive or accurate enough, virtual elements won’t match the real-world space convincingly. Another important factor is correct compositing, especially with AR elements in 3D space, where matching lighting, shadows, reflections to the physical stage affect realism. Even matching the focus distance and bokeh of the lens improves the realism of the final composite when coupled with the correct lens profile.