Jon Favreau, the actor and director known for films such as "Swingers," "Iron Man" and "The Jungle Book," talks with Recode's Kara Swisher about his new efforts in virtual reality, starting with the interactive short film "Gnomes & Goblins." Favreau says that VR is a powerful artists' tool, but advances in digital filmmaking won't replace actors, or the need for fundamental storytelling skills. He hopes to use virtual reality to create powerful connections between the viewer and virtual characters, and explains how other tech trends like Netflix have changed Hollywood forever.

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