Virtual YouTubers: ANYCOLOR stock up 620%

Japanese entertainment company ANYCOLOR provides a new magical experience, fuelled by creativity and technology. Are virtual YouTubers and pop-idol culture here to stay?

Virtual Youtubers (VTubers) are English and Japanese-speaking YouTube or live stream entertainers, who use avatar or anime designs generated using computer graphics.

The global VTuber market is projected to reach USD17.4 billion by 2028, from USD1.6 billion in 2021. This suggests a compounded annual growth rate of 36% from 2022-2028.

Anime Anycolor

3 female vocal unit consisting of Chima Machida, Toko Inui, and Akane Asahina, launched as a group in June 2022. Source: Anycolor.

There are more than 10’000 active VTubers and those with a large following of devoted fans turn their live streams into a lucrative business thanks to merchandise sales, YouTube ads, and sponsorship deals.

Japan’s new stock market darling

26 years old Riku Tazumi founded Anycolor at university. Today, the digital talent agency manages more than 200 creators, each working on a different animated character for YouTube.

The VTubers play online video games and interact with their fans on live-streamed shows. In a similar fashion to Amazon’s Twitch in the US, players livestream their video games and viewers can hand out ‘tips’ (money) to congratulate them.

Expectations for sustained high growth in sales have propelled Anycolor stock up 620% since its June 2022 IPO issue price.

The rapid ascent of Anycolor’s share price

Source: Bloomberg data, Flowbank.

Anycolor’s share price jumped 46% after it reported sales for its English global service doubled from the previous quarter. As a result, investors are particularly hopeful the company will rapidly expand overseas, building a fan presence outside its home market.

A bet on high growth

Anycolor has created an entertainment factory, helping creators rapidly launch new anime/characters. It is a result of building a unique ecosystem and leveraging the brand power of the VTubers agency, all in a completely virtual world.

According to Anycolor, the brand has the potential to grow exponentially as it reaches scales with the number of creators joining its ‘platform’.

The agency also trains the next generation of VTubers through its own ‘virtual talent academy’ to attempt to seed the next big VTuber stars. It offers them lessons for singing, dancing, steaming, and other necessary skills.

Rapid revenue growth and expanding profit margins

Source: Anycolor, Flowbank.


Operating profit margins are strong at almost 36% and have rapidly pushed higher. This may be explained in part by savings due to achieving scale, and the nature of a virtual business, as VTubers don’t require the high costs associated with running traditional (offline) concerts or performing on TV shows that regular pop bands do.

Moreover, year-over-year growth is strong, and the company continues to deliver triple-digit growth. The overseas expansion, which has the fastest growth, is particularly encouraging.

Where do VTubers fit in the media industry?

The media industry is rapidly changing with the rise of video content & gamification that push fans to interact. Community engagement is also evolving with tokenisation, private channels (pay for content), and interactions with fans through audio or message.

VTubers are a unique group of their own. Idol groups have long been popular in Japan, but VTubers are also finding success internationally. This could be attributed to the diversity they bring, accessibility through English-speaking, real-time (livestreams) and interactive features.

Paradigm Shift in the Media Industry

Source: Slide from Anycolor (investor relations).

Anycolor makes an interesting argument, in the sense that there are ample opportunities in the expanding total addressable market (TAM) for VTubers.

TAM Potential Driven by Expansion of VTuber Activities

Anycolor market size

Source: Slide from Anycolor (investor relations).

VTubers are engaging with fans through various channels such as live events, live streams, tie-up-ads & sponsorships, music, e-commerce initiatives, and even TV.


The success of Anycolor is unique and offers investors a snapshot of what could potentially shape the future of digital entertainment. The pop-idol culture is well-anchored in Japan and countries in the region such as Korea but finding sustainable growth internationally could be a challenge. So far, the evidence points to strong growth for the foreseeable future. It should also be said that although Anycolor has the first-mover advantage, in the future, it could face more competition. In Japan, VTubers are probably here to stay, but international growth will likely need to remain in the triple digits to justify another move up in the stock.