The purpose of this research was to determine the level of narrative comprehension in films when watched in a virtual reality headset (Oculus Rift). A 360-degree live-action film was created and was shown to participants after which the level of comprehension of various literary aspects as well as the feeling of distraction and enjoyment were measured using questionnaires and interviews. Revealing how increased freedom to view a movie in virtual reality has an effect on storyline understanding, provided a framework to start a discussion on whether and how to utilize virtual reality as a means for storytelling through films.