It's not a "hologram"' it's just a projection. You have to be reasonably close to the projection axis for this to be convincing, too.
In Japan, this has been taken further. No live performers at all. Here's a Vocaloid concert:
http://www.youtube.com/watch?v=dhYaX01NOfA
Both the image and singing in that video are entirely synthesized. Rock stars are headed for the unemployment office.