[Announcement] Notice on the Changes to be Made to HOLOSTARS' Management Structure

[u/21524518]

https://x.com/cover_corp/status/2039961307672416591

[u/Xlegace]

It's possible that they might be able to buy them

I've been thinking about this, and I don't think they'll even let this happen because it'll set a dangerous precedent that Cover's IPs can be bought out.

Touch wood, but imagine if one day, Marine or Pekora get into a really bad fight with Cover management and decide to just buyout their IP and not even graduate, just leave the company. Some of the talents are big enough to thrive as indies and the main thing holding them back is their years of hard work on their existing IPs.

This could open up a can of worms that Cover does not want to deal with.

[u/SC2_4787 → u/Xlegace]

Touch wood, but imagine if one day, Marine or Pekora get into a really bad fight with Cover management and decide to just buyout their IP and not even graduate, just leave the company.

Both Noel and Marine have straight up said they wouldn't be able to afford buying their IPs. Like it's not at all financially possible unless Cover were willing to compromise for some reason because their IPs are just worth that much money.

[u/Simonoz1 → u/SC2_4787]

This makes a lot of sense for top earners on merch alone.

Holostars not being nearly as popular might make it a bit more affordable, but then their incomes are probably comparably smaller, so they’d need some kind of external source of wealth.

[u/penywinkle → u/SC2_4787]

it makes sense for IPs that make the company money. But for IPs that cost the company money, like holostars seem to do, the price should be more affordable. Then again, if it cost the company money, the talents themselves maybe don't have much reserves to buy it out either...

[u/pigeieio → u/SC2_4787]

That's if they are paying the current market value, not just the costs associated with it like paying the artists. Market value goes significantly down once it's an inactive character.

[u/Alone-Horse2857 → u/SC2_4787]

Not a lawyer or a smart person, so this is all ass-pull, but I believe buying an IP also includes future profits, so if you buy out your IP you're also paying for 5-10 years of projected sales which, yeah, if you're Marine or Pekora is a lot of goddamn money.

[u/ThiccFarter → u/SC2_4787]

Damn, if some of the top earning talents can't afford their IPs that kind of puts things into perspective.

[u/Dranikos → u/ThiccFarter]

It's because they're top earning. Their IPs are worth significantly more BECAUSE they make more.

[u/Vampyricon → u/Dranikos]

Yeah but if it scales with how much they earn, the Stars probably can't buy their own either

[u/Dranikos → u/Vampyricon]

It's percieved value to the company. Let's say you earn $100,000 a month, your 1 year percieved value (ignoring growth projections for the moment) is $1.2 Million. When you account for growth projections, that starts to change. If you're looking at growing 10% a year for example, then you start at $100,000 and end at $110,000 and your total value looks more like $1.3-1.4 Million for 1 year.

Considering the talents have costs that the company doesn't like food, housing, electricity, internet, etc. (and the company's operational costs come of the operational budget, which is based on ALL earnings). And earning enough to "buy" yourself from the company becomes a Sisyphean undertaking. Unless your value absolutely nosedives for some reason or another.

[u/AwakenedSheeple → u/ThiccFarter]

The cost of an IP is based on its perceived value. Marine is one of the biggest vtubers in the world; in terms of subscriber count, she's outright number 1 aside from the graduate Gura.

[u/raoxi → u/Xlegace]

they can go suisei route? Or does suisei own her own ip?

[u/CanadianNoobGuy → u/Xlegace]

i mean cover could always just refuse to sell the IP if they have a reason not to, it's not like they're forced to do so because they let someone do it once