LEVELS, SM, and Bridge Entertainment Race to Enter the Virtual Idol “Blue Ocean” Market

As the virtual idol industry rapidly grows into a blue ocean market, major domestic entertainment companies are actively entering this sector. LEVELS, a joint venture between Dunaamu and HYBE, has embarked on producing male virtual idols. SM Entertainment launched the virtual artist “NAYVIS,” while SKINZ under Bridge Entertainment is already performing on live stages. The growth potential of the virtual idol market is evident in concrete figures. According to Global Information, the global virtual idol and virtual streamer market is expected to grow from $1.41638 billion (approximately 2.303 trillion won) in 2024 to $3.85242 billion (approximately 5.5224 trillion won) by 2030. The average annual growth rate in key regions such as North America at 18.51%, China at 19.01%, and Europe at 17.99% is also very high. In South Korea, PLAVE has demonstrated the viability of virtual idols. Led by CEO Lee Seong-gu, who formerly headed MBC’s VFX team, PLAVE, part of Blast Entertainment, recorded sales of 11.4 billion won and operating profits of 1.9 billion won in 2023—just one year after its launch as an MBC internal venture in 2021. Many key members of Blast Entertainment come from MBC, and they are expanding their reach through terrestrial networks such as “Show! Music Core.” The collaboration between talents from broadcasting companies and large entertainment agencies is accelerating the popularity of virtual idols. ISEGYE IDOL, which now includes Kim Young-min, a former KBS executive, is expanding its activities from online content to live performances. The rookie group SKINZ, shortly after their Debut, collaborated with SBS for the “INGA LIVE UNICORN IN TOKYO DOME” event and participated in a drama OST project. LEVELS’ decision to enter virtual idol production stems from the need to improve its financial performance. The company has never turned a profit since its establishment, recording net losses of 10 billion won in 2022, 17.9 billion won in 2023, and 12.3 billion won in 2024. Its NFT service “Momentica,” aimed at idol fans, went through closure procedures due to the decline in the NFT trend and negative perceptions among fans. Currently, LEVELS is recruiting personnel such as virtual artist producers and illustrators to develop male virtual idols. An industry insider commented, “Early virtual idols focused solely on advancing CG and AI technologies, but now they are beginning to gain popularity and familiarity through the expertise of professionals familiar with broadcasting and the idol industry. If this trend continues, virtual idols could evolve from a temporary fad into a distinct cultural genre.”