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The present study explores the efficacy and social potential of immersive-360° theater—live-captured theater performances filmed for virtual reality (VR) viewing—as a remote platform for audiences to view theater. We obtained survey and structured interview responses from 166 and 30 participants, respectively, self-categorized as regular theatergoers, novices, or underserved audiences. We measured immersion, presence, and emotional arousal in the virtual auditorium, technology acceptance, and social perceptions including platform compatibility with traditional theater and use as a psychosocial and accessibility promotion tool. Findings show that in the immersive-360° theater auditorium ratings for presence and immersion are mixed, and the latter is likely to be influenced by external factors including hardware quality and environmental distractors. For most, immersive-360° theater is regarded as a positive tool for psychosocial aspects and accessibility, but many highlighted the absence of social aspects which are central to the traditional theater experience and cannot be replicated in remote conditions. Despite this, the experience was enjoyable for most participants, and crucially, the majority of participants do not perceive immersive-360° theater as a “threat” to its traditional counterpart. Rather, with certain improvements it is seen as a compatible and complementary offering that has potential for use as a digital pipeline for underserved audiences and recruiting new patrons. Suggestions for improving the quality of the VR theater experience and its potential as an accessibility tool included improving headset quality and resolution, additional accessibility and user controls, and the ability to share the experience with somebody else in real time.