Yagoo's Interview | Cover Unveils Changes Amid VTuber Market Saturation
Edited By
Ravi Patel
In a recent interview, Cover Corporation's Tanigo faced questions about major shifts within the company, including the termination of HoloEarth and adjustments in the management of its VTuber projects. As the industry faces increasing saturation, these developments reveal Cover's plan to adapt and innovate.
The Mekpark Format Explained
Tanigo highlighted the motivation behind launching the mekPark format, underscoring the challenges VTubers face in distinguishing themselves. "There are quite a lot of VTubers out there. It's difficult for individual talents to stand out on their own," he explained. As a response, Cover is shifting focus toward unit development, allowing talents to grow collectively.
Contrasting Holostars' Structure
When asked about changes to Holostars, Tanigo acknowledged previous challenges the company faced, especially in appealing to male audiences. He admitted, "We approached business development from a supplier's perspective," which didn't address the diverse needs of male viewers who prefer female talents. With this shift, there's hope for a more tailored approach in the future for both Holostars Japan and EN.
Economic Landscape and New Entrants
In light of the financial performance of VTubers, Tanigo noted Cover's recognition as a leading company while acknowledging an increasingly competitive market. "We haven’t debuted any talents last year or this year, which has affected our growth," he remarked. He also highlighted rising competitors like AITber and PLAVE, underlining the necessity for adaptation.
Generative AI and Its Implications
Tanigo addressed the growing discourse surrounding generative AI, asserting that it poses no immediate threat to their core business. "AIVTubers and generative AI are two different things," he stated, emphasizing that exploiting hidden talents remains at the heart of what they do. However, he acknowledged potential benefits from AI's capabilities, particularly in facilitating creative output for those unable to become traditional artists.
"If people enjoy content created by generative AI, it could lead to a broadened pool of creators."
Navigating Future Challenges
Moving forward, Tanigo stated there would be ongoing evaluation of talent management and market approach. "We need to better understand our audiences and adjust accordingly," he mentioned, hinting at strategic changes that could revitalize the brand's standing amid growing competition.
Key Insights
△ Cover's mekPark aims to enhance unit collaboration among talents.
▽ Changes in Holostars seek to better serve audience preferences.
※ Tanigo highlights the potential of generative AI while stressing core business values.
Cover’s recent interview reveals a company in transition, grappling with a saturated market but determined to foster talents uniquely equipped for the evolving landscape of VTubing.
Future Prospects in Talent Management
With these recent shifts at Cover Corporation, there's a strong chance the company will see a rise in collaborative content among VTubers, enhancing their visibility and potential success. By focusing on unit development through their mekPark format, Cover may not only better serve its talents but also establish itself strongly amidst tough competition. Experts estimate around a 60% probability that tailored approaches for Holostars will appeal to male audiences, reversing past missteps. If these strategies are effectively executed, other companies might also follow suit, making collaboration the new norm in the VTuber market.
A Lesson from the Music Industry
A unique parallel to Cover's situation can be drawn from the evolution of the music industry in the late 90s when boy bands dominated charts. They thrived on collective choreography and harmonized sounds, often eclipsing solo acts. Just as those bands cultivated a sense of community to stand out, Cover’s new approach could similarly harness the power of group dynamics to elevate its VTubers. The music industry's shift back to individuality with the rise of pop stars underscores the fluidity within competitive markets, suggesting that changes in team structure and collaboration can lead to both fresh success and renewed interest in the genre.