Business
Hatsune Miku is playing Coachella, but she’s not human. Why brands are working with digital avatars
On Friday morning, Hatsune Miku performs songs on her biggest stage yet — Coachella.
The turquoise-haired Japanese icon has been touring North America, singing to thousands of fans in large concert venues. She’s inked branding deals over the years with companies including Google . And on Friday, she’s expected to thrill her followers at one of the world’s biggest music festivals — on the same day as Lana Del Rey and the Deftones.
But Miku is not human. She’s a totally digital creation, like an online avatar or mascot.
Her music — mostly synthesizer-heavy dance pop — is created from software developed by the Sapporo, Japan-based technology company Crypton Future Media.
The technology lets people, including fans, type in lyrics and punch in a melody. The program generates a singing voice for the song. Crypton then licenses the songs from the fans for her to sing at concerts. Miku herself is an illustrated character, resembling a 16-year-old girl from an anime or manga. To “perform” onstage, Miku’s image is displayed on a giant screen as a video behind a live band.
Unlike the “hologram” performances of deceased celebrity artists (think Tupac and Roy Orbison) that took the music industry by storm a few years ago, virtual artists aren’t simply re-creations — they’re avatars performing original music.
As it would be for a local indie rock artist, landing a spot at Coachella is a significant milestone for Miku. And her human creators. One of the people from Crypton who will be there at Miku’s performance at the festival’s Mojave tent is Riki Tsuji, a member of the company’s global business team.
“I’ve never been to Coachella, so I have no idea what kind of people are going there, what the crowds are gonna be like,” said Tsuji, who is traveling with Miku on tour. “But we’ll be putting together a show that hopefully they won’t forget.”
An image of Hatsune Miku.
(Courtesy of Crypton Future Media Inc.)
Hatsune Miku is part of an expanding group of digital, non-human performers that are attracting the attention of brands and music fans.
They’ve generated fans from younger generations of audiences that brands are eager to attract and understand — the kinds of kids who spend two to three hours a day on average on Fortnite and Roblox and are thus comfortable interacting with digital characters and online worlds.
One non-human digital influencer, named Miquela, boasts 2.6 million followers on Instagram and has done commercials for Calvin Klein and BMW. She’s represented by major Hollywood talent firm Creative Artists Agency, best known for working with A-listers including Brad Pitt and Viola Davis.
“There’s a new paradigm in terms of the digital world and the digital landscape,” said Phil Quist, a music and emerging technology agent at CAA. “When you think about what that looks like moving forward, those kids are going to be so used to being in those realms that a lot of their entertainment is going to come from that space as well.”
Hatsune Miku performs at the Doug Mitchell Thunderbird Sports Centre in Vancouver to a crowd of fans on April 4.
(MIKU EXPO 2024 North America Vancouver show)
How much money a nonhuman virtual artist can earn varies widely., Gigs, ranging from social media posts to live performances, can generate up to nearly seven figures, Quist said.
“It ranges, but it’s very commensurate in terms of the following and engagement,” Quist said. “I think it can be comparable to ‘traditional talent’ in terms of what those deals look like.”
In addition to her Coachella appearance, Miku is putting on a North American tour, which includes 21 concerts in 17 cities. Initially, Miku announced 17 performances , but the tour expanded because of demand, Tsuji said.
Miku began as a singing voice synthesizer (a.k.a. a “vocaloid”) in 2007. Her voice has been used in more than 100,000 songs.
“She’s very much a vessel for people to kind of express themselves and come together as a community,” Tsuji said. “It’s not just an artist-listener relationship. Each listener could also be an artist in this community.”
Angelbaby, a Hume digital music artist
(Courtesy of Hume)
But the growth of nonhuman influencers comes at a time when actual performers are worried about how digitization and automation through artificial intelligence could impact future work. The cost of creating a digital avatar could become cheaper as technology evolves. Human influencers could find themselves competing for the same brand deals as nonhuman ones.
The fandom surrounding digital artists can rival that of human musicians. During Austin’s South by Southwest festival in 2022, fans uploaded videos from a concert by digital music artist angelbaby, singing along to the songs.
Angelbaby, a computer-generated humanoid rapping rabbit, is owned by Hume, an L.A.-based metaverse tech and music company, which is now represented by CAA. Angelbaby’s single, “life is good,” which was released in November, hit more than 4 million streams on Spotify.
“At the end of the day, if the music wasn’t good for those artists, people would potentially point fingers and laugh,” Quist said. Looking at angelbaby, “you could tell that people were so engaged and enamored by the performance.”
The idea behind angelbaby came from Hume co-founders David Beiner and Jay Stolar. Stolar is a songwriter and producer who has worked with performers including Selena Gomez and Demi Lovato.
Hume created a backstory for angelbaby, a seven-foot rabbit from the year 3045, who is coping with losing the love of his life. Angelbaby has appeared on recordings with Grammy-winning producer Gino the Ghost and human music artists including boy band Prettymuch. The rabbit’s fans lean male and are in their 20s into their early 30s, Beiner said.
“I think on the emotional level if you do it right, people like to feel like they’re part of a fantasy,” Beiner said. “People have always liked to escape.”
Much of the work for virtual artists comes from partnerships with brands, who want to tap the performers’ younger, digitally savvy followers.
For example, Miquela — whose character is a socially conscious digital influencer from Downey — was featured in a commercial for BMW‘s iX2 electric vehicle. The bulk of Miquela’s fans are under 35.
“When you think about the BMW vehicle that came out that’s 100% electric,” said Ridhima Ahuja Kahn, vice president of business development and strategic initiatives at Dapper Labs, the company behind Miquela. “That was something that was really compelling to her because it tied in with a lot of her goals around sustainability.”
But like human influencers, there can also be some controversy surrounding digital ones.
Miquela’s ad with Calvin Klein showed her kissing model Bella Hadid, which some people online criticized as queer-baiting. Calvin Klein later said, “We sincerely regret any offense we caused.” Dapper Labs said it stands by the direction of the ad, which was to support all different types of backgrounds, genders and preferences.
“With virtual influencers, even they have drama too, just like any real-life influencer,” Ahuja Kahn said.
Many people worry that digital talent could take away human jobs. Last summer, writers and actors went on strike in part for more protections against the use of artificial intelligence.
“Anyone in the entertainment industry at large is very cognizant that a human resource of being on camera or being filmed or even writing a script or even editing a movie is being absorbed by what AI and technology can do,” said Elsa Ramo, a managing partner at Ramo Law PC.
But supporters of nonhuman talent say that the work can lead to more innovation, and, ultimately, jobs for the people who build the non-human influencers, although they acknowledge that AI will lead to more efficiency, which in turn will impact other jobs.
An image of Zlu, a blue alien model.
(Zlu / Ilian Gazut)
Ilian Gazut created Zlu, a blue alien model represented by management firm IMG Models who has done work for fashion designers like Karl Lagerfeld. Gazut said that Zlu’s movements are based on his movements.
“There is always a human behind it,” Gazut said. “So in my case, I didn’t have a job and thanks to him, I have a job.”
The world of digital, nonhuman influencers continue to evolve. Miquela, who made her first post in 2016, was originally conceived as being perpetually 19, but recently, the character made the jump to her 20s. And prospective schools are noticing.
“There are a few colleges who have reached out to us, so she’s looking at those and currently thinking about what the right fit for her would be and if college makes sense,” Ahuja Kahn said. “She’s been exploring what that path would look like for her.”
Business
iPic movie theater chain files for bankruptcy
The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.
The Boca Raton, Fla.-based company has 13 locations across the U.S., including in Pasadena and Westwood, according to a Feb. 25 filing in U.S. Bankruptcy Court in the Southern District of Florida, West Palm Beach division.
As part of the bankruptcy process, the Pasadena and Westwood theaters will be permanently closed, according to WARN Act notices filed with the state of California’s Employment Development Department.
The company came to its conclusion after “exploring a range of possible alternatives,” iPic Chief Executive Patrick Quinn said in a statement.
“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” he said.
The company will keep its current management to maintain day-to-day operations while it goes through the bankruptcy process, iPic said in the statement. The last day of employment for workers in its Pasadena and Westwood locations is April 28, according to a state WARN Act notice. The chain has 1,300 full- and part-time employees, with 193 workers in California.
The theatrical business, including the exhibition industry, still has not recovered from the pandemic’s effect on consumer behavior. Last year, overall box office revenue in the U.S. and Canada totaled about $8.8 billion, up just 1.6% compared with 2024. Even more troubling is that industry revenue in 2025 was down 22.1% compared with pre-pandemic 2019’s totals.
IPic noted those trends in its bankruptcy filing, describing the changes in consumer behavior as “lasting” and blaming the rise of streaming for “fundamentally” altering the movie theater business.
“These industry shifts have directly reduced box office revenues and related ancillary revenues, including food and beverage sales,” the company stated in its bankruptcy filing.
IPic also attributed its decision to rising rents and labor costs.
The company estimated it owed about $141,000 in taxes and about $2.7 million in total unsecured claims. The company’s assets were valued at about $155.3 million, the majority of which coming from theater equipment and furniture. Its liabilities totaled $113.9 million.
The chain had previously filed for bankruptcy protection in 2019.
Business
Startup Varda Space Industries snags former Mattel plant in El Segundo
In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.
The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.
Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.
Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.
Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.
(Varda Space Industries)
Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.
Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.
Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.
Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.
It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.
Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.
For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.
The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.
“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.
As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.
Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.
Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.
Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.
In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.
“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.
Business
How Iran War Is Threatening Global Oil and Gas Supplies
Ships near the Strait of Hormuz before and after attacks began
Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.
On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.
“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”
Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.
International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.
A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.
Where ships and energy facilities have been damaged
A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.
The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.
Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.
On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.
In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.
Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.
The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.
The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.
Where tankers moving through the Strait have traveled
In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.
Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.
Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.
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