For new investors or those sitting on the sidelines, alongside those that have been here for a while. It is important to understand that for the company to succeed in the long-term, it must do the following:
1. Create brand awareness and credibility. They leveraged Usher, Sketchshe, Jeb, and went on numerous high profile TV shows in the US and Australia. Particularly Usher did a great PR campaign to build credibility. For those that question Usher's relevancy, go and ask any person aged in the bracket of 12-35 and ask them if they know who Usher is, and if he is a superstar. And then ponder over the fact that Usher discovered, mentored, and marketed Justin Bieber, the worlds highest selling Male Pop Star.
2. Use social media platforms such as Facebook, Instagram, Twitter to reach larger audiences that are glued to their phones. This is the most efficient way to reach audiences. ocial media channels (because peopled aged 12-35 don't watch TV anymore. They consume content on their phones. In fact, they consume on average 19hrs of video content per week on their phones. That is just video content!). The company has created and posted almost daily, over 1,000 pieces of the highest quality production pieces and content that has been shared all over social media. The quality of this work is Hollywood, MTV quality. No question about this, which also feeds into building brand credibility.
3. Drive acquisition of users to download and install the platform from the above mentioned. Performers and fans alike have been the most powerful tool here as they have pulled in the audiences to come and vote. As such, over 410,000 downloads have been achieved in the first of many competitions. More on this later.
4. Have the users engage in the app. By having more users, and being able to retain those users after competitions finish is most important as they would have invested so much into attaining these users. Daily active users have massively outperformed industry peers. Daily average visits has also massively outperformed industry peers. Average minutes per session has also outperformed industry peers. Live streaming has as well. Needless to say, there is no surprise that the App has ranked as high as Number 4 in the US Entertainment category and Top 10 in Australia.
5. After generating the users, they need to build more users. How? By introducing new competitions in a variety of countries and genres. The company will be rolling out a new competition immediately following the completion of world wide tournament 1. This is titled the Spotlight Tournament. In addition, the company has signed a binding MOU with Riva, who plan to roll out a Megastar India tournament. Now onto Bollywood. For those from another planet, Bollywood is Hindi Indian Cinema. By tickets, it is the largest movie producer in the world, catering to a country with 1.3billion people. Over 3.5 billion tickets are sold annually. Problem is that for many, it is not feasible to watch. Partly because there are only 14,000 cinemas in the country. By way of comparison, USA has 30,000 cinemas (almost double), but less than a quarter the population. Oh and while I am at it, India owns in excess of 400million smartphones. So, without access to cinemas for many due to demography, whilst also considering that the world is shifting from tv to mobile content, it does not take a rocket scientist to realise the potential here.
6. Once they have reached a significant number of daily active users, this is where monetisation really occurs. And boy will it rain cash when it starts to sprinkle, the rain will come hard and plentiful for MSM. Why? Let's take a deeper look into the numbers here. All IMO.
It appears the company will be running multiple competitions at once. In multiple categories. In multiple countries. A user will open the app, and be able to watch content in a variety of genres. This will lead to even further engagement statistics on what are unparalleled stats seen in Comp 1.
So taking into consideration the above 6 points, lets calculate the potential here by mid year.
Completion of WWT1 downloads: 450,000 (averaging about 42,500 downloads per week it appears)
Spotlight Tournament (say 4 weeks): 170,000 x 6 monthly tournaments = 1,020,000
India Tournament: Lets say we are able to penetrate 2% (very low figure) of the 400m smartphone users: 8,000,000
This alone brings us to: 9,470,000 downloads.
Dion said that in the first 8 wks of comp 1, users had consumed over 6,500,000 minutes. If there are 410,000 downloads, then each user has viewed over 15.8 minutes each.
Take 15.8minutes x 9,470,000 downloads = 150million minutes being consumed. Why do I love this? Because unlike Facebook and Instagram, these are still quickly flick through images and videos. They do not capture the attention of users like a video does. Hence, companies will find Megastar extremely appealing for audience capturing quality advertisements.
At 9,470,000 downloads (which is only the tip of the iceberg - think Korea, Japan, Middle East, White Label comps run by Red Bull or Nike, or whoever) I will leave it to you to speculate how much they can make per user. Remember that the user is most likely middle class and could afford quite easily a few dollars in in app purchases.
How much would companies pay to run their own white label competitions on the app and have complete ownership of the audiences attention?
How much would companies pay to have their advertisements being displayed on an app with dozens on millions of users?
How much would companies be willing to pay for the captured data of the users? How powerful is this? And to understand the buying and pattern behaviours of these dozens of millions of users?
How about if the company decided to charge subscription to performers?
Anyways, understand the methodology of earning revenue. It starts with brand awareness. Then it moves onto reaching the target audience. Then it moves onto capturing that audience. Then it moves to retaining that audience. And then it moves to charging and making money form that audience. Any simple minded person should understand that. Goodnight and goodluck to all with your investment. Although the ASX has not been able to understand the potential here, I have. I'm here for the long haul.
All IMO and DYOR.
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