Yeah I believe the term comes from the corporate entertainment culture of idol groups, where the group is a rotating cast of younger entertainers and they eventually "graduate" out of the group (in the best case to a solo career). It's pretty fucked up in both contexts.
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Another thing to remember is that this sort of thing is more normalized in the Japanese entertainment industry than it is in north america (and it USED to be more normalized in north america than it is now).
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