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Make sure to open it on your mobile or tablet. You can pan around physically with your device, which makes it quite immersive (more so if you have a VR device, of course).

If you've got a recent-ish smartphone, I would highly recommend getting yourself a Google Cardboard for watching YouTube 360 videos, it really makes it even cooler. Yeah it's "poor man's VR" and certainly not in the same league as things like the Rift/Vive, but it's 15 bucks, so why not? I definitely feel like I've gotten 15 bucks worth of use out of mine, mostly because of videos like this.

Yup, the default direction of the camera is somewhat unfortunate - and there's no hint of controlling it :(

Thanks for the comment.

BTW Make sure to open the video in Chrome or Opera, the 360 thing does not work in Firefox

FWIW, it works for me in Firefox on Windows 10. Click and drag with the mouse, clicking on the arrows, or swiping on a touchscreen all work fine.

Same here with FF 46 on Ubuntu.

Ok turns out I had webgl disabled in Firefox in about:config. False alarm.