The four-member virtual girl group 'IXIA' is gaining attention as they prepare for their debut in the first half of this year. This is the first virtual idol presented by Na Byeong-jun, the CEO of Megameta and founder of Fantagio, the entertainment company that discovered actors Cha Eun-woo, Seo Kang-joon, and Ha Jung-woo.
Virtual idols are idols that operate based on characters in cyberspace. When a real person performs as the 'main body' dancing and singing, a character utilizing virtual reality (VR) appears in front of the audience.
Recently, the entertainment industry appears to be accelerating its virtual idol business. Domestic entertainment giant HYBE's subsidiary, Superton, unveiled the virtual girl group 'SYNDI8' in July last year. SME's virtual solo 'Naivis' officially debuted with its first single in September last year. What is the reason for entertainment companies jumping into the virtual idol business one after another?
◇Reduced human risk increases investment value↑
The main reason is that the profitability of virtual idols has been verified.
Although the initial development expense for virtual idols is high, their advantage lies in the ability to significantly reduce ongoing management costs such as training, housing, and costumes that are required for nurturing traditional idols. Popular culture critic Kim Sung-soo noted, "Traditional idols must adhere to contract conditions even if they succeed, causing entertainment companies' profit margins to gradually decline."
Another strength of virtual idols is that they are relatively free from the major risks associated with traditional idols, such as dating rumors and school violence. While virtual idols also have real individuals working behind the characters, the likelihood of being embroiled in various incidents is drastically lower compared to traditional idols who perform directly in front of the public.
When idols get embroiled in scandals, their affiliated entertainment companies can suffer significant impacts on stock price and performance. The greater the idol's popularity, the larger the impact. When Karina from SME's representative girl group 'aespa' faced dating rumors, the stock price plummeted, resulting in a loss of over 66 billion won in market capitalization in just one day. Similarly, a member of HYBE's girl group Le Sserafim was involved in a school violence controversy right after debut. Commentator Kim remarked, "The appeal of virtual idols lies in the ability to invest securely without considerable risk."
◇The AI-using generation welcomes 'freshness'
The advent of artificial intelligence (AI), such as ChatGPT, has lowered psychological barriers towards virtual idols. In 1998, the virtual artist Adam debuted as 'the first cyber singer in the country,' but did not achieve commercial success due to the awkward movements and world view of the character, which were unappealing to the public.
However, recent advancements in character creation technology have been significant. Additionally, an environment has been created where virtual idols are accepted without discomfort, particularly among the 'Generation Z' (those born from the mid-1990s to early 2010s) who regularly use AI and are familiar with smartphones.
Consequently, successful cases are also increasing. The five-member group 'PlayB,' which debuted in February 2023, garnered significant attention, with over 70,000 simultaneous connections during the pre-sale for their first solo concert in April 2024, leading to a complete sellout. 'Isekai Idol' (Ise Dole), which opened the virtual idol market in 2021, also achieved records including 36th on the Melon chart, 1st on Bugs, and 1st in the Gaon chart download institutional sector right after debut.
According to U.S. market research firm Allied Market Research, the global virtual human market size is expected to expand from $43.3 billion in 2023 to $1.82765 trillion by 2033.
◇Overcoming the virtual-reality barrier...content competitiveness is a homework assignment
However, there are still many challenges that virtual idols must overcome. Whether they can transcend the barriers between virtual and reality to form continuous connections with fans remains crucial. Critic Kim stated, "The sense of growing and aging alongside the idol is a strong factor in forming a bond with fans," and emphasized, "The ability of virtual idols to maintain their existing appeal while undergoing technological updates is essential."
It must also be considered whether virtual idols can maintain consistent public interest. The elimination of risks associated with traditional idol businesses could, conversely, become a weakness for virtual idols.
Eun-hee Lee, a professor at Inha University, noted, "Issues such as dating rumors are a risk for traditional idols, but they can also enhance sensationalism and rally the fandom. Virtual idols need to consider how they can elevate their visibility."
Cultural critic Lim Jin-mo emphasized that for virtual idols to succeed in the medium to long term, they must cultivate content competitiveness. He stated, "The novelty provided by the form of virtual idols will gradually diminish," and added, "Ultimately, improving the quality of songs, dances, and other content that can capture the public's attention is essential for the survival of virtual idols."