COVER

Basic Information

Stock Code
5253
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
June 2016
Listing Year
March 2023
Official Website
https://cover-corp.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
GNI, dely, Moi, ANYCOLOR, jig.jp, QPS Research Institute

Overview

COVER is a Japanese information and communications company founded in 2016, leading the industry through VTuber production operations and related content development.

Current Situation

COVER projects net sales of 43.4 billion yen and operating profit of 8 billion yen for the fiscal year ending March 2025, continuing its rapid growth. Centered on hololive production, its main businesses are VTuber talent management and live streaming system development. It creates unique entertainment experiences with AR/VR technologies and the metaverse 'HoloEarth,' successfully expanding its fan base domestically and internationally. In 2024, it announced the establishment of its first overseas base, COVER USA, to strengthen global expansion. It is also working to improve governance following recommendations from the Japan Fair Trade Commission. Moving forward, it aims to accelerate metaverse technology and IP expansion, targeting further revenue growth and market expansion by 2030.

Trivia

Interesting Facts

  • Pioneer company that debuted VTuber idol 'Tokino Sora' in 2017
  • Popular domestic and international hololive integrated into hololive production in 2019
  • One of the world's first publicly listed VTuber-specialized companies
  • Advanced utilization of AR live streaming technology
  • Changed founding plans inspired by the popularity of famous VTuber 'Kizuna AI'
  • Continued and strengthened overseas expansion even after withdrawing from China
  • Developed and provided VR table tennis game 'Ping Pong League'
  • Conducts diverse events both online and offline
  • Received recommendation from Japan Fair Trade Commission for Subcontractor Act violation but implementing measures
  • hololive production popular globally through multilingual expansion
  • Operates creator training projects in collaboration with vocational schools via industry-academia ties
  • Nearly 90% of employees engaged in production or technology, a creative collective
  • Launched holo indie to support fan creations
  • Positions Japan-originated virtual talent IP as key asset for overseas expansion
  • Newly listed on Tokyo Stock Exchange Growth Market in March 2023

Hidden Connections

  • hololive VTubers use YouTube live streaming, maintaining close partnership with Google.
  • Partners with pixiv and Shopify for merchandise platforms to expand sales channels.
  • Builds global fans through multilingual expansion in hololive Japan, English, and China versions (post-withdrawal).
  • Holds cross-shareholdings with peer ANYCOLOR (ENYCOLOR), advancing capital ties in the industry.
  • Differentiates from competitors through entertainment tech development leveraging AR/VR alongside live streaming.
  • Audited by Taiyo Limited Liability Audit Corporation, focusing on regulatory compliance.
  • Addressing improvements in creator contract terms following Japan Fair Trade Commission recommendation.
  • Contributes to training technicians and creators via industry-academia collaboration and promotes tech exchanges with other industries.

Future Outlook

Growth Drivers

  • Expanding VTuber popularity in global markets
  • Technological innovation and adoption of metaverse business
  • Advanced AR/VR technology and creation of new live experiences
  • Revenue expansion through IP diversification
  • Penetration of fan engagement apps
  • Growth of digital entertainment market
  • Strengthened regionally focused content expansion
  • Market development via overseas business subsidiaries
  • Promotion of talent development and tech innovation through industry-academia collaboration
  • Expansion of new businesses and investment promotion
  • Improved reliability through regulatory compliance
  • Entry into multiple genres

Strategic Goals

  • Achieve top market share in global VTuber market
  • Establish leadership in metaverse platforms
  • Reach total sales over 100 billion yen
  • Strengthen social trust and compliance
  • Enhance IP expansion for multilingual and multicultural adaptation
  • Expand and deepen fan communities
  • Establish and promote industry-academia collaboration model
  • Build sustainable business operations framework
  • Create innovative services through new technology introduction
  • Diversify and strengthen partnerships

Business Segments

VTuber Management and Production

Overview
Supports VTuber talent training, operations, and monetization.
Competitiveness
Strong brand power as a pioneer in the VTuber market
Customers
  • VTuber Performers
  • Advertising Agencies
  • Event Organizers
  • Media Companies
  • Sponsor Companies
  • Live Streaming Platforms
Products
  • Talent Management
  • Live Streaming Support
  • Character IP Development
  • Content Planning and Production

Metaverse Development and Operations

Overview
Planning, development, and operations of proprietary metaverse platform.
Competitiveness
Immersive experiences linked with VTuber IP
Customers
  • Game Developers
  • Advertisers
  • Fan Communities
  • Event Hosting Companies
Products
  • 3D Virtual Space Services
  • VR/AR Live Events
  • Metaverse Platform

Licensing and Merchandise Planning/Development

Overview
Supports product expansion using VTuber character IP.
Competitiveness
High-value products created through collaboration with popular IP
Customers
  • Retailers
  • Manufacturers
  • Event Planners
  • Overseas Partners
Products
  • Brand Licensing Provision
  • Original Goods Planning
  • Merchandise Event Operations

Application Development and Operations

Overview
Develops various apps supporting VTuber streaming and fan interactions.
Competitiveness
Multi-functional app development utilizing the latest AR/VR technology
Customers
  • VTuber Performers
  • Fan Users
  • Platform Operators
Products
  • Live Streaming Apps
  • Community Apps
  • AR/VR Technology Support

Event Planning and Operations

Overview
Planning and operations of events in anime and virtual fields.
Competitiveness
Innovative live experiences leveraging VTuber IP
Customers
  • Advertiser Companies
  • Live Event Companies
  • Fan Communities
Products
  • VR/AR Live Events
  • Fan Meetups
  • Online Event Planning

Competitive Advantage

Strengths

  • Pioneering VTuber production operations
  • Proprietary metaverse platform development capabilities
  • Strong character IP and fan base
  • Advanced utilization of AR/VR technology
  • Diversified business portfolio with multiple revenue streams
  • Brand expansion through global outreach
  • Comprehensive management and support systems
  • Extensive partnership network
  • Flexible live streaming platform operations
  • High growth rate and fundraising capabilities

Competitive Advantages

  • Market leadership as Japan's original VTuber agency
  • Unique services fusing AR/VR technology and metaverse
  • Global cross-cultural expansion strategy
  • Broad fan base acquired through diverse VTuber groups
  • Strong recognition and trust in the hololive brand
  • Diversified customer touchpoints via multiple platforms
  • High profitability from multifaceted IP utilization
  • Market expansion via overseas subsidiaries unmatched by competitors
  • Enhanced fan engagement through community apps
  • Uniqueness in creative talent development via industry-academia collaboration

Threats

  • Intensifying market competition from increasing rivals
  • Operational risks from Japan Fair Trade Commission compliance guidance
  • Regulatory and cultural barriers in overseas markets
  • Pressure to keep up with rapid technological innovation
  • Risks of IP theft and copyright issues
  • Revenue fluctuations from changing VTuber popularity
  • Risks from changes in live streaming platform specifications
  • Competitive environment with multi-platforms
  • Decline in advertising revenue due to economic conditions
  • Uncertainty in new market development
  • Cybersecurity threats
  • Intensifying competition for talent acquisition

Innovations

2023: Official Release of HoloPlus App

Overview
Launched fan community app.
Impact
Increased revenue through improved fan engagement.

2023: Launch of holo indie

Overview
Started support business for indie games using hololive characters.
Impact
Diversification of IP utilization and new revenue streams.

2024: Establishment of COVER USA

Overview
Established first overseas base to accelerate North American expansion.
Impact
Strengthened foothold in global markets.

2021: Announcement of hololive alternative

Overview
New project rollout utilizing metaverse.
Impact
Enhanced fan experiences and technological innovation.

2020: Launch of English-Speaking VTuber Group

Overview
Started hololive English to advance global expansion.
Impact
Significant increase in overseas viewers.

Sustainability

  • Governance strengthening in response to Japan Fair Trade Commission recommendations
  • Fostering inclusive corporate culture emphasizing diversity
  • Promoting proper use of digital content
  • Strengthening ties with local communities
  • Next-generation creator development through industry-academia collaboration