A lot of Vtuber agencies bloomed during the Covid period due to the lock down as well as the raise of large agencies. Even myself wanted to venture into the business. However, the industry is now undergoing a consolidation, stronger player remain strong, weaker and problematic players will be eliminated.
Following is my observation of the market regarding local agencies (without actual data support):
- Market Readiness for Vtuber Industry in Malaysia: Our market isn’t quite ready for this entertainment niche. The idol business in Malaysia, especially with vtubers, remains small and constrained. Collaboration between local artists and brands is rare, possibly due to a lack of interest but primarily because of the missing link within local industries.
- The Importance of Industry Linkages: Vtuber agencies may appear to focus solely on talent management, but their success relies on a chain of industries encompassing music, toys, events, publications, and even local authorities. If you read the financial report of bigger agencies, you will notice the sales of merchandise accounted for 40% of their total revenue!
Unlike Japan, where these industries are effectively linked, Malaysia lacks such integration. Establishing these connections is vital for continuous influence and branding in the public sphere. - Challenges in Funding and Cultural Development: Funding remains a challenge for the development of the industry. Malaysian capitalists prioritize investments that guarantee returns, growth of art and cultural usually comes at a lower priority. While there’s progress in appreciating art and culture, achieving profitability akin to what we seen in developed countries is still several years away.
- Conservatism’s Impact on Industry Growth: Conservatism poses a significant obstacle to industry growth, limiting both expression and acceptance. Overcoming this barrier is crucial for the industry to flourish.
- Demographic Considerations for Vtuber Agencies:Successful vtuber agencies often operate in countries with older populations, resulting in a wider age gap among audiences with better purchasing power. Understanding demographic factors such as age, marriage, and fertility rates is essential for sustaining revenue through viewer engagement and donations.
Compare with countries of successful Vtuber agencies, Malaysia is relatively younger in the population’s mean age. It can be very subjective, but in my opinion when a population is younger, individual will have more “Life” problem to tackle, e.g. finance, families, works, and etc. Entertainment will usually at a lower requirements (in terms og general public).
- Geographical Influence and Online Presence: While the internet offers global reach, a successful agency’s core support typically comes from its home country. Breaking into foreign markets relies on strong local support. Geographic algorithms play a role until influence transcends borders, affecting audience reach and engagement.
However, it doesn’t mean there is no opportunity. 2D characters had already been used as promotional material ever since. Malaysia may not be there yet, but the overall industry and public is gearing towards it. Agency needs to rethink the business strategy and connection with other industries to carry forward.
If Kizuna Ai is the keystone for the Vtubing industry, then we are 2 years away from the 10th anniversary. It is a very good time to rwork on new business strategy. In my opinion, Hololive is doing a very good example, as they slowly steer away from mere internet entertainment and doing more social intergrations.
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