Megastar Millionaire a hit – and it hasn’t even started yet
Users are potentially willing to pay more to jump on the Megastar Millionaire platform than MSM Corporation (ASX:MSM) first thought.
The ASX-listed company tapped Hub Entertainment Research to conduct market testing of its Megastar Millionaire platform ahead of a closed beta test scheduled for September, and launch in the first quarter of 2017.
It garnered the opinions of 2500 active social media users aged 15 to 45 years, with a rough split between men and women.
Hub asked the participants about the concept in order to find out what would get them interested in joining the competition – either as a fan or participant.
Even when told that there would be a price involved for participating, 83% of respondents found the Megastar Millionaire concept ‘appealing’, and 43% found it ‘very appealing’.
Among the other key stats are:
- 54% of respondents were ‘very interested’ in being a fan, and 39% were also ‘very interested’ in being a super fan.
- 24% were ‘very interested’ in being a performer’
- The global nature of the competition was a key selling point for the respondents
- Offering prizes to fans gave them a stronger incentive to participate in the competition.
The most heartening for MSM though will be that respondents were, on average, willing to pay $US62 ($A82.95) to be a part of the competition – a value which MSM said far exceeded its internal expectations.
One fan was quoted by the company as saying that giving fans a chance to win prizes would be key to the competition’s success.
“It’s an awesome concept, so many ways to win. If you give fans the chance to win prizes they will be more apt to want to watch the show, never miss an episode, and interact with every means available to them.”
The research will help MSM shape the competition and price points heading into beta and into official launch, with MSM managing director Dion Sullivan saying that the research gave it a quiet confidence about the concept.
“The monetisation potential of the Megastar Millionaire platform and the price-point at which users were willing to pay exceeded our expectations and gives us great confidence regarding the revenue potential of the Megastar Millionaire competition once launched,” he said.
It should be noted that MSM is an early-stage tech play conducive on the success of the Megastar Millionaire platform, which is not guaranteed.
The Megastar Millionaire competition
At its core, Megastar Millionaire is being pitched as an online-only video-based talent competition where the winner walks away with $1 million.
It is seeking to capitalise on the popularity of TV talent shows such as the X Factor and The Voice – but integrating online gaming and social media as part of the user experience.
MSM’s ambition is to reach and surpass existing talent-search variants that do not take advantage of the surge in online participation. American Idol is exclusively broadcast to TV viewers in the US, and is currently valued at $2.5 billion.
Further exacerbating MSM’s optimism is the fact that TV viewership is declining worldwide, especially amongst 18-24 year olds that are the quickest to embrace online alternatives.
It has also inked strategic partnerships with a raft of other companies such as ToneDen, ROAR LLC, and Digital Riot Media LLC.
It is also offering prizes for fans who elect to follow their chosen performer.