Online talent contest Megastar Millionaire plans IPO on the ASX

Megastar Millionaire co-founder Dion Sullivan.
Megastar Millionaire co-founder Dion Sullivan. Edwina Pickles

Ever dreamed of being discovered on YouTube, pulled from your day job and thrust into the spotlight with fame and fortune? An Aussie and American entrepreneur have teamed up to create an online talent quest to turn such dreams into a reality, and will list on the Australian Securities Exchange.

Megastar Millionaire, the brainchild of Adam Wellisch and Dion Sullivan, will let the public vote online for artists (singers, extreme sports stars, performance artists and more) with the winner to be awarded $1 million.

The business will reverse-list on the ASX in November through the shell of Minerals Corporation, but before this it is raising up to $7 million to help build the technology infrastructure and fund the prize.

Mr Sullivan, a marketing expert who has worked in the entertainment industry for about 25 years, said the business was listing on the ASX as a path to the Nasdaq.

AUSSIE PATH TO NASDAQ

“There is a lot of very, very good technology coming out of Australia and there is also a lot of Silicon Valley money here. The ASX is a top 10 exchange and it’s very well regulated, but it’s not a big exchange,” he said.

“We’re building the first season as a proof of concept and the intention is to then take it to the States on the Nasdaq.”

Megastar Millionaire has attracted the support of US tech investor Doug Barry, who was a founding investor in music streaming service Pandora and an advisor to TiVo.

Mr Barry is the company’s chairman. Joining him on the board are Hollywood producer John Baldecchi and digital gaming executive Michael Pole.

The competition will launch in the United States in the fourth quarter of 2016, but there are also plans to roll it out in Australia, New Zealand and throughout Asia.

“The intention is to roll it out in every continent that has heavy mobile penetration and secure internet service provider protocols,” Mr Sullivan said.

“It will work like any other entertainment format, and the competition will run for 16 weeks.”

To be part of the competition, contestants will upload videos for a nominal fee, but will have to have a minimum number of fans to qualify.

FAMILIAR TV FORMAT

Throughout the 16 weeks, viewers will be able to watch the performances of the artists online and vote for them to be part of the top 12. The final 12 will be mentored by industry leaders and showcased on the Megastar Millionaire platform.

The eventual winner, who will be judged by an independent panel, will be awarded the $1 million prize, four semi-finalists will receive $25,000, and the top 12 will have the chance to audition for a film through Digital Riot Studios.

“We’ve spoken to high-calibre entertainment executives from music and film who are looking for ways to discover the next Taylor Swift,” Mr Sullivan said.

“What we’re building is a platform that will let your brand and fan base go through the roof.”

The platform’s revenue will be generated through a freemium subscription platform, advertising and reselling big data.

But like Twitter and Snapchat, Mr Sullivan expects most of the platform’s value will be generated by the huge traffic volumes he expects the website to attract.

Read at: http://www.afr.com/technology/online-talent-contest-megastar-millionaire-plans-ipo-on-the-asx-20151015-gk9nbz#ixzz3xFZ6rXzo