MSM grabs ToneDen boost
MSM Corporation (ASX:MSM) has received a boost as it looks to build its Megastar Millionaire platform, as a key source for fans and artists grows 90% since last year.
It told its shareholders this morning that the number of content creators and artists using the ToneDen platform has risen to 475,000 – up 90% since December 2015.
MSM has a formal arrangement in place whereby MSM will work with ToneDen on community building, as well as having access to a network of artists to potentially participate in the Megastar Millionaire competition, along with their fans.
The fact ToneDen has seen bullish growth in artist numbers indicates that it is adept at building a community of artists, something which will come in handy as MSM attempts to build ahead of a Q1 2017 launch.
It also gives MSM access to a database of “millions of passionate fans” who could potentially become fans of Megastar Millionaire.
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.
As this is yet to occur, it is important to take a cautious approach to any investment in MSM and seek professional financial advice for further information.
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 is also offering prizes for fans who elect to follow their chosen performer.
Late last month MSM released research through Hub Entertainment Research which indicated that potential users were willing to pay more to join the platform than first thought.
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.