VTuber: Virtual social media goes live

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  Quantumrun Foresight
• August 1, 2022

Insight summary

The fusion of virtual reality (VR) with social media has given rise to virtual YouTubers (VTubers), who use VR technology to bring digital personas to life. Originating in Japan, VTubers, often resembling anime characters, offer diverse content, from singing to gaming. VTubing liberates creators from appearance expectations and opens up new income streams, while also potentially transforming the content creation landscape.

Vtuber context

The fusion of VR with social media has given rise to a fascinating phenomenon known as VTubers. These VTubers harness the power of VR technology alongside motion-tracking tools to breathe life into their digital personas within the virtual realm, all the while garnering a dedicated online following.

Originating in Japan, VTubers have started to make their mark in Western countries as well. VTubers typically adopt two or three-dimensional avatars that often bear striking resemblances to traditional anime characters. These avatars are characterized by their endearing, oversized eyes and vibrant personalities. VTuber avatars may come with intricate and enchanting backstories, or they can represent everyday content creators who engage in activities like singing, dancing, and live-streaming video games.

One noteworthy example is Ami Yamato, a Japanese YouTuber who established her VTuber presence while living in the UK in 2011. The process of crafting VTube content involves content creators wearing motion trackers to capture their physical movements, which are then translated into the form and dimensions of an animated persona. From January to June 2023, VTubers represented 1.4 percent of the YouTube Live Gaming community's active content creators and accounted for 9.6 percent of the total viewer hours, experiencing a 28 percent increase in viewership.

Disruptive Impact

The VTubing trend provides creators with a distinct means of content generation while challenging the established norms seen on platforms like Twitch. On many streaming platforms, especially women influencers, often feel compelled to reveal their physical appearances and conform to certain beauty standards. However, VTubing grants them the freedom to craft personas that align with their personalities and content offerings. 

Beyond its liberating impact, VTubing offers a pathway for emerging content creators to gain recognition and establish a stable source of income. Depending on the continued growth of VTubing, creators may unlock innovative ways for brands to promote their products and services to specific consumer segments. Over time, this trend may lead to a reconfiguration of the content creator community, with a divide emerging between those who continue to appear in the physical world and those who embrace VTubing techniques and styles to carve out their digital presence.

As technology advances, VTubers may explore more immersive experiences, interacting with their audiences in increasingly lifelike ways. Virtual spaces and environments could become extensions of the content, offering audiences unique and interactive encounters with their favorite creators. This fusion of technology, storytelling, and entertainment has the potential to redefine how audiences engage with content in the long-term and their expectations of personalized entertainment.

Implications of VTubing's impact on social media

Wider implications of VTubing providing content creators more ways to reach their audience may include:

• A reduction in cyberbullying based on appearance and race, contributing to a safer online environment for content creators.
• The potential tokenization of digital avatars through non-fungible tokens (NFTs), opening up a new market for audiences of popular VTubers.
• A heightened normalization and widespread adoption of VR technologies, leading to increased VR-powered content creation and consumption.
• A growing division of opinions within content creator communities regarding the use of VTube avatars as a means to conceal certain aspects of a creator's identity.
• Increased demand for technology and software development skills as VTubing continues to gain prominence, potentially impacting the labor market by creating new job opportunities in these fields.
• The potential for governments to establish regulations and policies addressing issues related to VTubing, such as privacy, data security, and intellectual property rights, to protect both creators and audiences.
• Enhanced diversity and representation within the content creation industry, as VTubers have the freedom to express themselves without the constraints of physical appearance, fostering a more inclusive online community.
• A potential environmental impact as the increased use of VR technologies and the energy requirements of data centers that support VTubing content may contribute to greater energy consumption.

Questions to consider

• Will the VTubers become a dominant part of YouTube or remain a more niche offering compared to content creators revealing their true appearance while making content?
• Do you think social media platforms should request detailed personal information from VTubers to identify them if necessary? Alternatively, should VTubers' right to privacy be protected?