Business

FEATURE: Virtual idols draw real-world crowds as Japan’s VTuber market soars

By Ryuichi Kadota

Copyright kyodonews

FEATURE: Virtual idols draw real-world crowds as Japan's VTuber market soars

TOKYO – VTubers, or virtual YouTubers performing through animated avatars, are shifting from a Japan-born niche subculture to mainstream entertainment, with the country’s booming market expanding overseas.

At Tokyo’s Ariake Arena in August, around 10,000 fans, many wearing blue “happi” coats, cheered as Amane Kanata, a silver-haired VTuber produced by Cover Corp., took to the stage for her first solo live concert called “Lock On.”

“Hey, you guys,” the avatar shouted, drawing roars from the crowd. With live music and a close-up of her face filling a giant screen suspended from the ceiling, the show felt much like a concert by a human performer.

Producers attribute the realism to meticulous work on lighting, shadows and stage design. Fans, however, say the draw is more personal.

“Her songs were beautiful and the dialogue funny,” said a 34-year-old attendee who had traveled from Taiwan, adding that Kanata had become popular in Taiwan through streaming during the COVID-19 pandemic.

Kanata, who is said to be 18 years old and studying to be a full-fledged angel, made her debut stream in December 2019 and reached 10,000 subscribers shortly after in early 2020. She has the nickname “PP Tenshi” (PowerPoint Angel) because she once made debut materials via PowerPoint.

Her fanbase seems to be drawn by her sweet, polite, angelic demeanor, a shy personality that seems to resonate with audiences and her strong singing voice that gives her extra reach to translate into real-world events.

But Kanata’s presence on multiple platforms such as YouTube and X, original music releases, collaborations in commercial settings and pop culture events raise her profile beyond just streaming. That helps reach people who might not typically follow VTubers online but attend events or see promotions offline.

As of the end of March, Cover, founded in 2016, had 89 VTubers under its wing, selected for their singing and speaking skills.

The Tokyo-based company boasts nearly 97 million registered fans, about 30 percent overseas, thanks to its English- and Indonesian-speaking VTubers.

Beyond streaming, its revenues come from concerts, merchandise, and tie-ups with companies such as Major League Baseball’s Los Angeles Dodgers. Cover plans to expand its U.S. sales network.

Rivals including Anycolor Inc. and a Sony Group affiliate are among around 10 companies that have entered the VTuber business, which Yano Research Institute estimates topped 100 billion yen ($676 million) in fiscal 2024, up from 31 billion yen in 2021.

Operators see an advantage in VTubers’ intellectual property rights, which remain with companies rather than individual performers.

Compared to group events, Kanata’s sellout crowd was much smaller than the 35,000 over two days that attended Cover’s Hololive Super Expo 2025 held at Makuhari Messe International Exhibition Halls in Chiba, near Tokto, in March, but that was a very different type of event with a focus on arcade-themed games and activities.

Special tickets for Kanata’s concert were priced at 12,000 yen, and the event was also streamed online for paying viewers.

“Unlike ordinary idols, Kanata feels more approachable to me,” said an 18-year-old student from Osaka Prefecture, who attended the concert with three friends and purchased a 7,500 yen fan happi coat online before the show. “It’s also nice to see her grow.”