The scenario I am thinking of will maybe take place a few years from now. It is an integration of AR into VR Experiences, so that in effect the “reality” that is augmented is actually the VR Experience a person is in. For example, there might be a Cinematic VR Experience that allows for user generated objects that in turn change the narrative. Then if this is played socially, the number of user-generated objects potentially grows, allowing for a number of different narrative scenario possibilities.
The difference from 2D films is astounding, but this is a good thing. It shows how really distinct VR and AR are from traditional film. Traditional film might still have its own place years from now, as VR and AR become commonplace and we have the capability of self-generating monsters that run after us in a VR Experience.
This particular news story sparked my thoughts here: http://uploadvr.com/pantomime-shared-ar/