Ann: Placement Completed, page-23

I doubt that Riva is interested in a takeover but they may be interested in becoming a cornerstone investor with a seat on the board. It would cost them a whole lot less capital but still give them a strong say in the future direction and management of the company.

As for the Megastar app itself, I think that the version which we use today is far superior and engaging when compared to what was rolled out 5-6 months ago. The Spotlight competitions are consistently pumping out high quality emerging talent, the Live Lightning competitions are fun and are now running 7 days a week and you can even get paid to watch advertising when you go to buy more coins as an in-app purchase.

The negative that I see was the company's use of paid performers and social influencers to drive downloads. Their contract payments should of been based more on the number of downloads that they achieved and not just for posting a minimum amount of times. It was not successful. We all know this. Using Usher for branding was a good idea but he could of done so much more to engage with his followers but he just didn't. He was bloody expensive too. This doesn't mean that Megastar is a failure though. It's more of the case that their marketing strategy was wrong with too much relying on Usher's performance. I think that Management are aware of this and it's unlikely that they will make the same mistake twice. They say that they are now seeking partnerships with leading media industry players to scale up the Megastar platform so I'm very interested to see more detail on this.

It's still early days IMO. This online talent app will continue to be upgraded and is evolving into something that the market clearly wants. Free to air TV is dead and video on demand is the future. Future judges will cost less and be much more engaged within the app. Spotlight feeder competitions will continue to grow in popularity and provide a strong pool of talent for WWT2 in Q4.
There's plenty to like about what management have achieved so far and I'm certainly not writing off my investment just yet.