Virtual production is an innovative technique that uses real-time technology to create digital environments and sets during filming instead of using physical backgrounds or visual effects added later in post-production. 

It involves the use of high-resolution LED screens or real-time projections that display digital environments while filming, allowing filmmakers to see and record interactions with these environments as if they were real. This improves the cast's immersion in fictional settings, streamlines the filming process and offers more creative control over the final result.