Virtual Idols Outsell Real Stars: Are They the Future of Pop Music?

The virtual idol market thrives amid the ongoing buzz in the Korean entertainment industry. Virtual idols are characters created using 3D character and motion capture technology and real-time graphic processing to mimic a person’s movements in front of a camera. In reality, there is a person behind the moving 3D artist.

This industry, opened up by advancements in cutting-edge technology and incorporating artificial intelligence, is creating a more diverse environment. PLAVE is currently the most popular virtual idol. It is recording popularity and sales comparable to traditional idols, attracting the attention of major entertainment companies.

From February to March, the virtual idol pop-up store held at the Hyundai Department Store surprised the industry with massive sales. The Hyundai, one of the most iconic department stores in South Korea, attracts young customers by hosting various pop-up stores. This pop-up featured not only PLAVE but also various virtual idol groups. Groups such as Stellalive and Isakai Idol participated, attracting 100,000 visitors.

The total sales recorded by these groups amounted to 7 billion won (approximately $5 million). This is a significant figure considering that the usual monthly sales for a fashion pop-up store are around 1 billion won (approx. $734,0000). Experts analyze this sales drive as an excellent opportunity to confirm the significant increase in popularity and market expansion of virtual idols. They believe it signifies a shift from the previous negative perception of virtual idols, as the pop-up event drew many fans and is becoming a major culture.

PLAVE, in particular, has led the virtual idol industry and recorded sellouts at its pop-up store commemorating its first anniversary. According to PLAVE’s agency, VLAST, the pop-up attracted nearly 1,000 visitors per day, and even more visitors when fans who came to see the concert were included.

Experts believe that PLAVE has created a syndrome in the established idol market. Positive reviews note that it has approached consumers with freshness and uniqueness, unlike traditional idols with similar concepts that pop up like mushrooms.

Furthermore, they achieved remarkable results in the music and album sectors. They released their second mini-album, ASTERUM: 134-1, earlier this year, which sold 569,289 copies in just one week. This is the highest album sales recorded by PLAVE and ranks 17th in the first-week sales for male groups on the Hanteo Chart. PLAVE also demonstrated its popularity by ranking in the top 5 on the Bubble, a one-on-one messaging service between fans and artists.

Moreover, they became the first virtual idol group to rank first on a music broadcast and entered the top ranks on various domestic music charts, demonstrating their popularity. They are expected to gain even more popularity through fan concerts.

The virtual idol market is projected to reach $22 trillion by 2028. Due to PLAVE’s popularity, major entertainment companies are also launching virtual idols. For instance, SM Entertainment’s affiliate SM Culture Partners invested in Scon to enter the virtual market. Since the pandemic, Scon has created 3D characters and solutions and has shown explosive growth in the virtual character business. In the first quarter of 2023, they established their motion capture studio, evolving into an entertainment company that produces domestic virtual groups.

Experts predict that if SM Culture Partners fully supports Scon, Scon may participate in various businesses that SM Entertainment conducts with virtual-related content. With this investment, Scon plans to secure new intellectual property rights and support the growth of virtual idols and broadcasters, leading the new K-pop market.

An industry insider said, “Although virtual reality and metaverse technologies have not grown as much as expected, the virtual idol market discovered in the process is recording substantial growth, and market expansion is expected.” They added, “It is expected that the virtual idol project conducted by SM Entertainment and Scon’s new virtual idol discovery business will grow and proceed rapidly through collaboration.” As such, there is growing anticipation for the virtual idol market, which continues to receive aggressive investments from major entertainment companies.