This paper focuses on Virtual YouTubers (VTubers) who are virtual anime live-entertainers in Japan. The goal of this research paper is to analyze VTubers in terms of traditional Japanese theater art forms and character narratives. Fifty-five VTubers were interviewed and the results showed that not only are there similarities between traditional Japanese theater and VTubers, but also VTuber performances are shaped by different socio-cultural values that come into play as they perform their virtual characters. This research contributes to our understanding of a broader Japanese socio-cultural context behind the masquerading practice of VTubers.