Virtual ConcertsTech ExplainerJun 15, 2026, 6:07 PM· 7 min read

How Avatar Concerts Are Rewriting the Rules of Live Music

Driven by motion-capture technology and massive bespoke arenas, virtual concerts have evolved from pandemic novelties into a billion-dollar live entertainment industry.

By Factlen Editorial Team

Music Industry Executives 40%VFX & Tech Innovators 35%Local Economies 25%
Music Industry Executives
Investors and promoters see virtual residencies as a highly scalable, unprecedented revenue engine.
VFX & Tech Innovators
Visual effects studios and producers view avatar concerts as a new art form that merges cinema and live music.
Local Economies
City planners and tourism boards value bespoke virtual residencies for their long-term economic stability.

What's not represented

  • · Live Music Traditionalists
  • · Touring Crew & Roadies

Why this matters

The success of virtual residencies proves that legacy artists can continue to perform and generate hundreds of millions of dollars indefinitely, fundamentally changing how the music industry monetizes live entertainment and how fans experience their favorite bands.

Key points

  • Avatar concerts use motion-capture technology to create hyper-realistic digital versions of legacy artists.
  • The illusion relies on massive 2D LED screens, precise geometry, and synchronized lighting rather than sci-fi holograms.
  • ABBA Voyage generates an estimated $2 million per week and contributed £322.6 million to London's economy in its first year.
  • KISS has sold their rights to Pophouse Entertainment to launch their own avatar experience in Las Vegas in 2028.
£322.6M
London economic boost (Year 1)
$2M
Estimated weekly revenue
65 million
Pixels on main LED screen
$300M
Estimated KISS rights sale

When the legendary rock band KISS finished their final farewell concert at Madison Square Garden, the physical band walked off the stage—and towering, fire-breathing digital avatars took their place. The crowd watched as the meticulously rendered digital versions of the band's younger personas launched into an encore, signaling the end of a fifty-year physical touring career and the beginning of a radical new experiment in live music. It was a seamless transition from human performers to immortal digital entities, broadcast on massive screens above the arena floor.[1]

This wasn't just a flashy encore or a temporary gimmick; it was a permanent handover. KISS has officially crossed into the digital realm, following the massive, unprecedented success of ABBA Voyage in London. By embracing avatar technology, these legacy acts are proving that a band's touring life no longer has to end when the musicians decide to retire from the road. Instead, they are laying the groundwork for a future where iconic artists can perform indefinitely, unconstrained by physical aging or the grueling logistics of global travel.[1][2]

For decades, the music industry viewed virtual concerts as a novelty or a pandemic-era stopgap meant to tide fans over until real venues reopened. Today, they represent a permanent, highly lucrative evolution of live entertainment. This new medium merges the blockbuster visual effects of modern cinema with the communal, high-decibel energy of a live gig. Producers are no longer trying to simply livestream a performance; they are creating bespoke, immersive art installations that demand to be experienced in person alongside thousands of other fans.[5]

Creating these digital performers—dubbed "ABBAtars" in the case of the Swedish pop group, or simply avatars—requires a monumental technological lift that begins with the artists themselves. To ensure the digital models move with perfect authenticity, the original band members must perform their sets in specialized motion-capture suits. For ABBA Voyage, the four original members spent five grueling weeks in a studio, performing their entire setlist so that every subtle dance move and physical quirk could be recorded and digitized.[7]

Original band members spend weeks in motion-capture suits to digitize their exact movements.
Original band members spend weeks in motion-capture suits to digitize their exact movements.

The visual effects heavy lifting is handled by Industrial Light & Magic (ILM), the George Lucas-founded visual effects giant famous for its work on Star Wars and the Marvel Cinematic Universe. During the ABBA motion-capture sessions, ILM deployed 160 cameras to capture every facial expression and physical mannerism from multiple angles. Afterward, a team of over 1,000 visual artists spent months translating those human nuances into hyper-realistic digital models, effectively de-aging the performers to their 1970s prime.[3][7]

Despite popular belief and frequent media shorthand, these shows do not use sci-fi holograms projecting into thin air. The core visual component is actually a massive, ultra-high-resolution 2D LED screen. In the ABBA Arena, the central screen boasts 65 million pixels, providing a canvas so sharp that the human eye struggles to distinguish the digital figures from reality. The avatars are rendered in real-time or pre-rendered in stunning 3D, but they are ultimately displayed on a flat surface hidden seamlessly within the stage design.[3][7]

The true magic of the illusion lies in precise geometry and a modern adaptation of the 19th-century "Pepper's Ghost" theatrical trick. Producers meticulously calculate sight lines, the rake of the stage, and the exact distance between the audience and the screens to force a three-dimensional perspective. By controlling the viewing angles and keeping the audience below the primary lighting rigs, the production tricks the brain into perceiving depth where none exists, making the avatars appear as physical bodies occupying real space.[3]

The illusion relies on precise geometry and synchronized lighting rather than true 3D holograms.
The illusion relies on precise geometry and synchronized lighting rather than true 3D holograms.
The true magic of the illusion lies in precise geometry and a modern adaptation of the 19th-century "Pepper's Ghost" theatrical trick.

To further blur the line between the digital and physical worlds, the lighting rigs inside the virtual animation are perfectly synchronized with the massive physical lighting rigs in the arena. When a digital spotlight flares on the LED screen, a corresponding physical light blinds the audience in the real world. This seamless blending of practical and virtual effects—combined with a live 10-piece band playing alongside the digital vocals—creates an overwhelming sensory experience that grounds the avatars in reality.[5]

This extreme level of technical precision is exactly why these avatar shows cannot easily be packed up and taken on a traditional global tour. The illusion requires a highly controlled environment. To make ABBA Voyage a reality, producers had to construct a bespoke, purpose-built arena in London's Queen Elizabeth Olympic Park. The venue was designed from the ground up specifically to house the massive screens, the complex lighting geometry, and the unique acoustic requirements of a hybrid digital-live performance.[5]

The financial barrier to entry for this kind of production is staggering—ABBA Voyage reportedly cost $175 million to develop—but the returns are actively reshaping music industry economics. Because the digital performers never tire, the show can run multiple times a week without risking vocal strain or fatigue. The London venue currently operates at 99% capacity night after night, generating an estimated $2 million per week in ticket and merchandise sales, proving that audiences are willing to pay premium prices for virtual acts.[2]

The ripple effect on the local economy is equally massive, turning these bespoke arenas into highly coveted urban developments. In its first year of operation, ABBA Voyage contributed a staggering £322.6 million to London's economy. The ongoing residency has generated over 5,000 jobs across hospitality, transit, and venue operations, while drawing hundreds of thousands of international tourists to the area. For city planners, these permanent virtual concerts offer the economic benefits of a major music festival, but sustained year-round.[4]

The staggering financial impact of a successful permanent virtual residency.
The staggering financial impact of a successful permanent virtual residency.

Seeing this highly lucrative blueprint, other legacy acts are rushing to secure their digital futures. Following their final physical show, KISS finalized the sale of their music catalog, likeness, and iconic makeup rights to Pophouse Entertainment—the lead investor behind ABBA Voyage. The deal, estimated to be worth $300 million, gives Pophouse the total creative control needed to build the next generation of avatar concerts, ensuring the KISS brand continues to generate revenue long after the founders have retired.[2]

Pophouse is currently deep in development on the KISS avatar experience, which is slated to debut in Las Vegas in 2028. Unlike the ABBA show, which aims for photorealism of the band's 1979 era, the KISS production is expected to lean into the band's comic-book superhero personas, featuring avatars that can fly, shoot fire, and perform superhuman feats. The band members have already completed their motion-capture sessions, laying the digital foundation for a show that promises to be more of an immersive experience than a traditional concert.[8]

Bespoke arenas must be built from the ground up to house the complex screens and lighting rigs.
Bespoke arenas must be built from the ground up to house the complex screens and lighting rigs.

The long-term vision for this technology breaks the physical limits of touring entirely, offering unprecedented scalability. As Pophouse CEO Per Sundin recently noted, avatar technology theoretically allows a band to perform in three different cities, across three different continents, on the exact same night. Once the digital assets are finalized, promoters can franchise the production globally, building identical bespoke arenas in Tokyo, Las Vegas, and London to run the exact same show simultaneously, multiplying revenue streams exponentially without any additional wear and tear on the artists.[6]

While traditionalists may always prefer the sweat, unpredictability, and spontaneity of a live human being on stage, the avatar concert has proven it can deliver genuine emotional resonance. Fans are leaving these arenas in tears, fully bought into the illusion and the shared communal experience of the music. It is no longer a question of whether virtual concerts will catch on with the public, but rather which iconic artist will be the next to step into the motion-capture suit and secure their digital immortality.[5]

How we got here

  1. 2016

    Development begins on ABBA Voyage, with the band secretly performing in motion-capture suits.

  2. May 2022

    ABBA Voyage officially opens in a purpose-built arena in London's Queen Elizabeth Olympic Park.

  3. December 2023

    KISS concludes their final physical tour and debuts their digital avatars at Madison Square Garden.

  4. April 2024

    KISS finalizes the sale of their catalog and likeness rights to Pophouse Entertainment for an estimated $300 million.

  5. 2028

    The projected launch date for the fully realized KISS avatar concert experience in Las Vegas.

Viewpoints in depth

VFX & Tech Innovators

Visual effects studios and producers view avatar concerts as a new art form that merges cinema and live music.

For companies like Industrial Light & Magic and Pophouse Entertainment, the goal is not to trick the audience into thinking the physical band is present. Instead, they view virtual concerts as an entirely new medium. By combining motion capture, machine learning, and massive LED displays, they argue they are creating an immersive, emotional experience that allows a band's creative essence to live on indefinitely, unconstrained by human aging or physical limitations.

Music Industry Executives

Investors and promoters see virtual residencies as a highly scalable, unprecedented revenue engine.

The economics of touring have traditionally been capped by travel logistics and human endurance. Industry executives point to ABBA Voyage's $2 million weekly revenue and 99% capacity as proof that avatar shows solve this bottleneck. Because the digital performers never tire, promoters can run shows seven days a week, or even franchise the exact same production across multiple continents simultaneously, turning legacy music catalogs into perpetual live-entertainment assets.

Local Economies

City planners and tourism boards value bespoke virtual residencies for their long-term economic stability.

Unlike traditional touring acts that visit a city for one or two nights, bespoke virtual arenas require long-term land leases and infrastructure development. Local governments and economic analysts highlight that these permanent installations drive sustained tourism. In London, the ABBA Arena generated over £322 million for the local economy in a single year, creating thousands of permanent jobs in hospitality and transit that a standard weekend festival could never support.

What we don't know

  • Whether audiences will embrace avatar concerts for artists who are no longer living.
  • How the technology will scale to smaller, non-bespoke arenas in the future.
  • If the superhero-style fantasy avatars planned for KISS will resonate as well as the photorealistic ABBA avatars.

Key terms

Motion Capture (Mo-cap)
A technology where performers wear suits covered in sensors to record their physical movements, which are then translated into digital models.
Pepper's Ghost
A classic illusion technique using angled glass and lighting to make 2D reflections appear as 3D objects on a stage.
Avatar
A highly detailed digital representation of a person, animated to move and perform exactly like their real-world counterpart.
Gross Value Added (GVA)
An economic metric that measures the value of goods and services produced in an area, used to calculate a concert's impact on a city.

Frequently asked

Are the ABBA Voyage avatars 3D holograms?

No. They are ultra-high-resolution 2D digital avatars projected onto a 65-million-pixel LED screen, using lighting and geometry to create a 3D illusion.

Did the original band members perform for the digital models?

Yes. The original members of both ABBA and KISS spent weeks in motion-capture suits, performing their sets so cameras could record their exact physical mannerisms.

Can these avatar concerts go on a normal tour?

Currently, no. The illusion requires a bespoke, purpose-built arena with exact sight lines and synchronized lighting rigs that cannot be easily packed up and moved.

Who creates the visual effects for these shows?

Industrial Light & Magic (ILM), the visual effects company founded by George Lucas, created the digital avatars for both ABBA and KISS.

Sources

Source coverage

8 outlets

3 viewpoints surfaced

Music Industry Executives 40%VFX & Tech Innovators 35%Local Economies 25%
  1. [1]The GuardianMusic Industry Executives

    A towering, high-tech version of Kiss took over from the band at Madison Square Garden

    Read on The Guardian
  2. [2]Music Business WorldwideMusic Industry Executives

    KISS claim to become first US band to go fully virtual with new avatar show backed by Pophouse

    Read on Music Business Worldwide
  3. [3]IngeniaVFX & Tech Innovators

    How ABBA Voyage was made

    Read on Ingenia
  4. [4]VOILocal Economies

    ABBA Voyage Avatar Concert Boosts London's Economy, Donates 322.6 Million Turnover

    Read on VOI
  5. [5]BlooloopVFX & Tech Innovators

    Cutting-edge technology at ABBA Voyage

    Read on Blooloop
  6. [6]SiriusXMMusic Industry Executives

    Don't Kiss Them Goodbye: Paul Stanley, Gene Simmons to Continue KISS as Digital Avatars

    Read on SiriusXM
  7. [7]SeatPlanVFX & Tech Innovators

    The ABBA Voyage Technology Explained

    Read on SeatPlan
  8. [8]ChaoszineMusic Industry Executives

    KISS revealed fresh information about their future ambitions for their live virtual avatar experience

    Read on Chaoszine
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