In a digital era where anonymity and creativity collide, virtual entertainers known as VTubers are reshaping online interaction. These animated content creators, portrayed as fantastical beings from demons to schoolgirls, now dominate platforms like Twitch and YouTube, attracting millions of global viewers. Leading this surge is Hololive, a Japanese agency under COVER Corporation, which manages 87 talents collectively boasting over 80 million subscribers. Their influence extends beyond screens: In July, Hololive partnered with the LA Dodgers to fill a 56,000-seat stadium and will soon showcase performers at New York’s Radio City Music Hall.
VTubers rely on motion-tracking software to animate digital avatars, allowing creators to stream without revealing their identities. This model has proven revolutionary for those hesitant to appear on camera. “Shy individuals can transcend social barriers by expressing themselves through avatars,” said COVER CEO Motoaki Tanigo. “Viewers connect with personalities who might otherwise stay hidden.” The format gained momentum during COVID-19 lockdowns, with YouTube VTuber content views doubling from 2020 to 2021 and surpassing 40 billion annually in 2024.
While some VTubers operate independently, corporate-backed groups like Hololive employ a meticulous system for crafting virtual stars. The agency’s origins were accidental: Founded in 2016 as an AR/VR developer, COVER pivoted after its first avatar, Tokino Sora, overshadowed the company’s initial game. Today, Hololive auditions are notoriously competitive. Prospective talents undergo months-long tryouts, with no input on their assigned avatar’s design—though they shape its personality and niche, whether gaming, singing, or comedy.
The process draws parallels to Asian idol culture, where agencies tightly manage performers’ images. Tanigo, however, rejects direct comparisons. “Idols often follow corporate mandates due to high financial stakes,” he noted. “Our focus is empowering individuality with strategic support.” Hololive retains ownership of characters and takes a cut of earnings but provides resources like studio access, production teams, and global event coordination.
The industry faces growing pains. Earlier this month, third-ranked agency VShojo dissolved after losing $11 million, with star VTuber IronMouse alleging withheld charity funds. Departures, termed “graduations,” also affect Hololive: Seven members left in the past year, including top influencer Gawr Gura, who debuted a new avatar to 200,000 viewers post-exit. Tanigo declined to comment on exits but emphasized refining support systems for remaining talents.
Despite challenges, Hololive is expanding its virtual footprint. Its “Holoearth” project—a metaverse-style platform where fans interact with avatars—aims to deepen community engagement. “In five to 10 years, VTubing will produce globally recognized artists,” Tanigo predicted. As digital personas blur the lines between fantasy and reality, their cultural resonance shows no signs of fading.
