Nippon TV’s ClaN, Hello Kitty owner Sanrio target virtual YouTuber growth

ClaN and Sanrio launched Nyantasia! last year

Nippon TV-owned ClaN Entertainment in Japan and Hello Kitty owner Sanrio Company have struck a deal to grow their virtual YouTuber (VTuber) business together.

The capital and business alliance agreement comes after ClaN and Sanrio launched a joint VTuber project titled Nyantasia! and debuted three new VTubers in December 2023 and three more in May 2024.

In the process, the two companies had been discussing the possibility of working together again, and have struck this deal with a view to further strengthening their collaboration in the digital space.

Financial details of the deal were not disclosed, but Nippon said ClaN has so far raised 850m yen (US$5.6m) in financing. ClaN has been developing its influencer business, including VTubers, since 2022.

The two parties are aiming to become global leaders in the VTuber market, in which online entertainers use virtual avatars generated using computer graphics. Real-time motion-capture software or technology is often, but not always, used to capture their movement.

Tomokuni Tsuji, president and CEO at Sanrio Company, said: “As the way we enjoy content changes with the times, VTubers are attracting attention for their ability to provide high-frequency and interactive experiences, and VTubers are expected to become market drivers not only in traditional YouTube distribution but also in XR, Web3 and other areas.

“We believe the VTuber business will become a core business in our digital strategy. Sanrio’s medium-term management plan calls for the expansion of its IP portfolio and multi-layered monetisation.

“Through the capital and business alliance with ClaN, which has expertise in the VTuber business and relationships with VTubers, we will develop digital services that provide new value to creators in Japan and overseas.”

Motoyuki Oi, president and CEO, ClaN Entertainment, added: “By combining ClaN’s expertise in the VTuber business with the knowledge of Sanrio, which continues to develop its IP business globally, we will create new entertainment and accelerate business expansion.

“We are also convinced that VTuber [content can] compete on a global scale, and we will use this partnership as a starting point to expand our business globally.”