Everything you need to know about the rise of VTubers

Understanding Vtubers and how they generate revenue

Nasmedia
5 min readDec 15, 2023
Nasmedia

Over the past few years, Virtual YouTubers, commonly known as VTubers, have gained significant popularity. This article will help you understand the reasons behind the surge in VTuber popularity and highlight the unique aspects that set them apart.

What is a VTuber?

VTuber is a short form of “Virtual Youtuber”, which is a content creator on YouTube platform or Twitch who use digital graphics to portray their face and body as a fictional character with anime design instead of showing their real face. They maintain a level of anonymity by not revealing
their true identity. Currently, VTubers primarily focus on live streaming to generate income through features like Super Chat.

VTubers are popular because they can interact with their followers in a way that’s different from traditional YouTubers. Because their virtual avatars afford them anonymity, VTubers are able to express themselves more freely.

What exactly does a VTuber do?

Credit: COVER Corp.

VTubers are similar to online celebrities that exist virtually such as MrBeast, PewDiePie, and many more. People tune in to watch VTubers because they genuinely enjoy their content and personalities. This sentiment mirrors the broader appeal that content creators, including VTubers, have among their audience.

Audiences are drawn to their favorite VTubers for the intriguing mix of controversial and humorous personas, whether fabricated or authentic. Each VTuber boasts distinct talents, ranging from singing and gaming to voiceovers, ASMR, and even building connections by being friends with their audience.

What has caused the rise of VTubers?

Credit: sportskeeda

The onset of the Covid-19 pandemic in 2019 prompted a surge in people’s reliance on social media, driven by the increased availability of free time during the lockdowns. Fans began translating videos capturing the spontaneous moments of VTubers. As YouTube’s algorithm began recommending VTuber videos to broader audiences, it sparked significant attention and interest.

At this time, live streaming replaced scripted or pre-recorded programming on VTuber. VTubers created more of an interactive experience for their viewers by engaging in activities like singing, playing video games, or “shitposting” live, rather than producing narratives for their anime avatars.

Additionally, the translated clips introduced VTuber to audiences outside of Japan. Japanese VTuber agencies are beginning to recognise the global market, seek out talent globally, and launch their own international VTuber.

In 2020, Hololive, a renowned and prosperous VTuber agency, introduced their first generation of English-speaking VTubers. VTubers then quickly became popular on the internet over time. Not only are VTubers popular among their community but celebrities and content creators are also beginning to notice them and become their fanclub

TV commercial featuring Vtuber

Credit: パズドラ公式チャンネル

In the latest Puzzle and Dragons TV commercial, featuring renowned actor Kazunari Ninomiya as a 3DCG avatar, a unique approach takes center stage. The ad, geared towards a younger audience, introduces Ninomiya as a “VTuber,” utilizing advanced motion capture technology to bring the virtual character to life.

Despite being a CG animation, Ninomiya personally controls every detail, from head to fingertips, employing a special capture suit with 77 markers and 35 cameras. The VTuber, designed by Yusuke Kozaki, captures not only the animated charm but also replicates Ninomiya’s distinctive movements and quirks.

In the commercial, Ninomiya’s avatar takes on the challenge of the “3 cross eraser” technique in Puzzle and Dragons, showcasing the actor’s gaming prowess. Although Ninomiya himself remains unseen, the commercial promises to deliver the unmistakable “Ninomiya-likeness” through the avatar’s appearance, movements, and skilled gameplay. Don’t miss the joyous dance and playful words as Ninomiya celebrates a successful play in this innovative TV commercial.

How do VTubers make money?

Credit: COVER Corp.

Like any other content creators, VTuber mostly makes money through receiving donations, accepting sponsorships, and ads. Among all of these, donations are one of the primary sources of income as well as one of the primary sources of streamer-viewer reaction.

Viewers choose to donate to VTubers based on various factors, such as finding the content interesting or seeking instant gratification through interactions like having their name or message read aloud. Regardless of the reason, platforms and firms make significant efforts to encourage viewers to contribute monetarily, employing flashy notifications and distinctive user icons to emphasize the act of donating, which is now more glorified than ever.

Ads, although common, are less reliable due to fluctuating revenue across platforms. Sponsorships, sought after by more established VTubers, involve promoting products or services for monetary gain. The sponsorship amount is influenced by factors like channel popularity and the sponsoring company.

Embracing the idol culture, VTubers engage in activities akin to traditional idols, such as live concerts and merchandise sales. These concerts serve as a significant income source, relying on fan interactions and merchandise purchases. VTubers emulate idols to benefit from the fan economy, emphasizing relations with their audience.

Collaborations with companies or participation in events provide VTubers with additional income. Intellectual property revenue is garnered by copyrighting content, while some VTubers receive a fixed base salary. Beyond these, companies may secure funds through investments,
stocks, or crowdfunding.

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Nasmedia

Nasmedia merges South Korea’s digital innovation with 20+ years of expertise to craft impactful global marketing strategies for digital excellence.