2017 MSMCI Annual Report

Adam Wellisch
Chairman, MSMCI


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A Note from the Chairman

Dear Shareholders,

The financial year 2017 has been one of significant milestones for MSM. The team have worked hard to complete the development of the Megastar platform and have successfully released the App in key geographic markets, starting with Great Britain, South Africa, New Zealand and Canada. Talent auditions have commenced and we have secured an incredible register of sponsored talent to represent and promote the competition. Given the calibre of talent that the Company has acquired we have executed at an extremely rapid pace.

The Megastar competition continues to be delivered by experts who are the best in their fields, helping to ensure its success on every level. During the year, we significantly strengthened our team with additional high calibre industry experts. Former X Factor executive, Marion Farrelly, joined as the competition’s Executive Producer, and eight-time Grammy award winning superstar, Usher signed on as its Chief Creative Director shortly after the end of the financial year.

These new additions are supported by the existing high profile members of our Board and Advisory Board, who have willingly contributed their time and expertise on pivotal decisions and projects throughout the year. Jennifer Herman has recently assumed an executive function in addition to her role on the Advisory Board to drive forward user adoption of the Megastar app, harnessing her Electronic Arts and Zynga experience.

We have also had great success in securing amazing talent to be the face of Megastar. Usher was appointed as Chief Creative Director, judge, mentor and brand ambassador, establishing a new level of industry credibility for the Megastar platform and the Company’s ethos. Usher is supported by competition hosts, SketcheShe and over 70 high profile Social Influencers and Sponsored Performers, representing an incredibly talented and global recognised entertainment team.

Through this list of globally appealing talent, our total audience reach has been built to an astonishing 130 million social media users. This audience reach is being leveraged for our multi-faceted marketing and media program, which includes social media, mass media and PR campaigns in our key target regions: the US, the UK and Australia. This program gives us a direct pathway to rapidly scale-up user participation in the competition via downloads, which will lead to monetization of the platform through in-App purchases, followed by advertising, sponsorships and eventually leveraging content and user data generated by the competition.

Throughout the year, we continued to work closely with our marketing, production and talent partners, such as Roar, DanceOn, FullScreen, Traction, ToneDen, Influential, Manifeste Marketing, Digital Riot Media and Boomopolis. Through these partnerships, we have been able to access top talent and significantly increase the calibre of the first Megastar competition, not to mention boosting its audience reach. These partnerships will become increasingly important as the competition progresses, with the activation of social media and marketing networks.

All this progress would not have been possible without the hard work and commitment from the whole MSM team in the US and Australia. I’d like to thank all of our hard working staff for their efforts thus far, as well as their ongoing commitment as we commence global auditions for the first Megastar competition.

Our shareholders have also played an equally important role in supporting the Company and helping us to achieve so many significant milestones. MSM successfully raised $4.88 million during the year, followed by more than $10 million post period. Through these Placements, we have expanded our shareholder register to welcome new and existing domestic and international shareholders, including two additional well regarded funds, to our shareholder base.

There is a lot to be achieved in the coming months by the MSM team. With global auditions about to commence, the team is squarely focused on successful execution of the first global Megastar competition. The results of our Beta testing and two statistically significant market research studies completed during the financial year give us great confidence that our target market will adopt and engage with Megastar. The team at Megastar is extremely excited for our first competition. Download the app, tell your friends and follow us on social media @megastarapp

Yours sincerely,

Adam Wellisch
Chairman


2016 MSMCI Annual Report

Adam Wellisch
Chairman, MSMCI


READ THE ANNUAL REPORT

A Note from the Chairman

Dear Shareholders,

On behalf of the board, I would like to take the opportunity to thank you for your support this year and provide you with an overview of the tremendous success of our Company.

During the 2016 financial year, MSMCI listed on the Australian Securities Exchange (ASX) and, since our listing, we have significantly progressed towards the launch of our first product offering, the Megastar Millionaire competition platform.

Megastar Millionaire will be the world’s richest online, mobile-first, talent discovery competition platform once launched. The competition will be unique and will connect performers and fans in an innovative and interactive gamification experience. We are enormously excited about its potential to transform, mobilise and individualise the search for new artists on a global scale.

On the road to the launch of the competition, we have built a world-class Advisory Board to support the Company, substantially adding to our media and technical capabilities. Our Advisory Board includes leading digital media executives, former Netflix and Google senior technical staff and highly experienced US-based movie and video game producers.

We have also significantly invested into the development of our platform to ensure it is of the highest possible quality once launched. During FY16 we undertook both qualitative and quantitative testing, both of which provided a range of valuable findings that have helped us to refine the Megastar Millionaire competition platform. This ensures the best possible user experience once our competition is launched in 2017.

We commissioned industry leading entertainment researchers, Hub Entertainment Research to undertake independent research into our platform to shine a light on its potential as well as ways to optimise it. The research demonstrated the significant commercial potential of Megastar Millionaire, with users indicating that they were willing to pay amounts that exceeded our expectations. In addition, the Hub Entertainment Research demonstrated the strong willingness of users to engage with the competition platform.

Our strategic partners, ToneDen and Digital Riot Media also made substantial progress during the year. ToneDen, a music creation software platform reported substantial user growth, something that we will be able to leverage to help build the success of the Megastar Millionaire Platform. Digital Riot Media, a dedicated direct-to-consumer digital movie studio, released its first film, with more films in the pipeline that are currently undergoing production and are expected to be released in the near future. Importantly, in addition to winning the US$1 million prize, the winner of the Megastar Millionaire competition will appear in a film produced by Digital Riot.

The key focus of our Company for the 2017 financial year is the launch of the Megastar Millionaire competition platform, which we expect to occur early in the 2017 calendar year. As part of the launch, we are focused on the selection of celebrities to judge the competition entrants.

Once again, I would like to thank Shareholders for their tremendous support during the year and we look forward to continuing our strong progress towards our competition launch in early 2017.

Yours sincerely,

Adam Wellisch
Chairman