Licensing Expo 2024: Thoughts on hololive production’s IP Potential
We here at hololive TODAY had the awesome opportunity to attend the Licensing Expo in Las Vegas for the first time.
I did my best to make my maiden voyage worthwhile by learning about the licensing industry, chatting with my existing network about VTubers, and introducing new faces to hololive production.
Here are some key takeaways from the show that I think relate to hololive production/COVER’s business strategy:
There is Great Potential for the VTuber Scene in IP Licensing
Anime and Manga IP Licensing is Growing Strong
Location-Based Entertainment (LBEs) is a Trending Category
Media Mix/Transmedia is a Very Strong Strategy
The Importance of Being Strategic Long-Term; Nimble Short-Term
“Brand Licensing” is the Emotional Connection Between Buyer and Brand
There is Great Potential for the VTuber Scene in IP Licensing
VTubers are still a very niche category in Japanese entertainment and culture. While they have a very strong presence in Japan and continue to grow rapidly, their expansion into overseas markets, like the West, is just beginning. This presents a fantastic opportunity for hololive production and the VTuber scene as a whole to tap into the industry as licensors.
With a rapidly growing global fandom, hololive production is emerging as a valuable opportunity for brands and businesses to expand. We’re already seeing this in action with collaborations like hololive production and Indomie/Pop Mie in Indonesia, SUSHIRO in Taiwan, ANIPLUS in Korea, and SuperGroupies in North America.
Anime and Manga IP Licensing is Growing Strong
Anime and manga have become major players in brand licensing. According to the 2024 Global Licensing Industry Study, the Entertainment/Characters segment grew 6.9%, reaching almost $148 billion in revenue! Anime/Manga, Gaming, and Social Media account for 42% of that revenue, compared to Film & TV’s 38%.
Big names and evergreen titles like Dragon Ball, One Piece, and Naruto take the spotlight. Yet, as Alvin Lu, CEO of Kodansha USA, notes in Publishers Weekly:
“There was a hunger for a variety of different kinds of stories, as we saw the entire manga industry see a boom, not just the usual players or the usual stories.”
―Alvin Lu in “Manga Fans Can’t Get Enough,” published by Deb Aoki on Publishers Weekly
Other titles and smaller names in the anime/manga scene have the potential to do big things in licensing as well. Rob Pereyda summarizes it nicely in his article on Henshin, stating:
“A hot anime IP is only the start…In general, I see licensing success as a function of the consumer and industry popularity of a property relative to internal resources. A hot property is just the beginning; it’s only one part of a successful program. Tremendous opportunities for people who can unlock value.”
―Rob Preyda in “Licensing Expo 2024: Five Takeways From an Anime Industry Veteran” on Henshin
hololive production/COVER’s transparency in their business model helps us understand that they ARE a hot property on the market right now AND can unlock significant value.
Some of their recent and ongoing collaborations in the anime and manga industry is indicative of this, like hololive EN -Myth-’s Mori Calliope singing the ED theme song “Go-Getters” for DC’s upcoming anime Suicide Squad ISEKAI as well as the special PV theme song “Future Island” for Volume 106 of One Piece manga, which was also featured on Episode 1097-1099 of the One Piece anime.
As shown in the visual below from their “Materials for Growth Opportunities and Strategies” document, COVER’s conceptual image of its economic zone include multiple markets like the anime and manga markets. By targeting groups familiar with anime culture, hololive production can greatly increase new contacts/fans and potentially tap into into the mass population of entertainment consumers.
Location-Based Entertainment (LBEs) is a Trending Category
Location-based entertainment and experiences is among the three top-performing categories in licensed products/services. This is huge for hololive since many of their collaborative projects involve in-person events like pop-up stores, cafes, and other themed attractions.
I think that in the future, we’ll be seeing even more collaborative LBEs, not limited to cafes or pop-up shops either. Bigger events like appearances at anime conventions, expos, or full-on performances could be on the horizon, similar to recent concerts like hololive production x DreamHack in Melbourne and hololive EN 1st Concert -Connect the World- in Los Angeles.
Media Mix/Transmedia is a Very Strong Strategy
Transmedia is becoming a serious business strategy for many companies, including COVER. Transmedia allows brands to tell stories across multiple formats, thus transcending mediums. Stories told through video games, manga, anime, or live streams can still be consumed independently. But together, they complement one another to create a holistic narrative.
Recent examples of this from hololive production include their ongoing project Magical Girl holoWitches! that blends anime, manga, and other yet-to-be-announced media.
The Importance of Being Strategic Long-Term; Nimble Short-Term
Industry veterans at the show emphasized the importance of being strategic in the long term and nimble in the short term. In my opinion, Japan-based companies generally excel in the long-term, as seen in the gradual yet strong growth of anime/manga IP in licensing over the years.
hololive production/COVER is no exception. As we mentioned earlier, they are very transparent in their long-term business strategy, sharing documents publicly that provide fans and prospective investors with the affirmation they need to support COVER’s growth. However, I believe there is room for improvement in their short-term actions.
Based on my observation of short-term trends, some things simply cannot be capitalized on due to potential permissions and policies that must be followed, such as permissions to play certain trending games. These are fine, as these policies likely exist to protect talents from potential infringement. Though fans do wish these permission could be granted faster!
But in other observations, there are areas that can certainly be improved on. One that I can point out is the timing of social media content related to a hololive talent's birthday, anniversary, song releases, and other marketing efforts. Highlighting these events in a timely manner would be beneficial not just for the talent, but also for the fans.
Social media content, one of the top categories in licensed revenue along with anime/manga and video games, should be taken seriously in the full business strategy of a brand. Social media is a great way to monitor trends and micro-trends. And It’s also a great way to interact and stay close to consumers. Consumers want to be heard, and their concerns are just as important as the brand itself. Understanding and quickly taking action on social media trends/content will work wonders in the short-term.
“Brand Licensing” is the Emotional Connection Between Buyer and Brand
“Brand licensing” has traditionally been defined as a contractual agreement between a licensor and a licensee. However, this definition overlooks one of the most important aspects of brand licensing: the consumer.
To reflect this, here is brand licensing as defined by License Global’s content director, Ben Roberts:
“Today, brand licensing is a multi-billion-dollar business model built on bringing the emotional connection between buyer and brand to life, and that has expanded from consumer products to entertainment, adaptation, digital, phygital, food, experiential and beyond. Fandom is driving this at pace and it’s an exciting time to be a part of this business.”
―Ben Roberts in “License Global Spotlights Gaming, Fashion and Food Among 2025 Growth Categories” on License Global
Brands have proven to be a difference-maker in global revenue studies, showing consumers are tremendous fans of the brands, characters, and IPs they love. For brands to reach this level of engagement, they need to innovate and create a culture fostered by all parties, including the fans, creators, employees, and even executives.
COVER embodies this definition with its mission: “Together, Let’s Create Culture Loved by All.”
hololive production actively strives to build its platform in collaboration with a diverse range of content creators.
hololive production continuously explores “white space” and untapped opportunities, using cutting-edge technology to create new and high-quality experiences that captivate fans both new and old.
Through livestreams and 2D entertainment, hololive production is committed to delivering content all year long, to fans of all ages, genders, and nationalities.
Challenging the norm is a core part of hololive production’s brand identity.
The hololive fandom has always had a strong emotional connection with the hololive brand, VTuber talents, and even the staff/managers working for these talents.
Going back to brand licensing, hololive production already has a great track record of successful collaborations. We’ve seen them collaborate with Among Us to release in-game cosmetics, themed apparel, plushies, and other goods. And we’ve also seen hololive GAMERS’ Inugami Korone collaborate with SEGA’s Sonic to meet in 3D, promote the game Sonic Frontiers, introduce Korone-themed DLC, and release Sonic-themed Korone merchandise.
These collaborations, along with many other examples, demonstrate how deeply hololive resonates with fans across various mediums. With ongoing and future brand collaborations, no doubt hololive production will continue to thrive with the tremendous support of its enthusiastic and dedicated fanbase.
You can read our ‘Tech’ blog on hololive production at the Licensing Expo 2024 here:
hololive production Returns to the Licensing Expo 2024 in Las Vegas
