MSM Corporation International (ASX: MSM) has inked an agreement with the Riva Group to launch its Megastar online talent competition into the massive Indian market.
A world mobile-first talent competition, Megastar is viewed by downloading the app and watching performers online, from any category, compete to win US$1 million, a film role and other prizes.
Viewers can use the Megastar app to vote in the competition and select the overall winners.
The format draws on the popularity of existing talent competitions such as X Factor and Idol, but Megastar’s developers have shaped it to fit the growing on-demand, mobile format, with back-to-back 12-week competitions.
India’s population comprises more than 1.3 billion people with more than 400 million possessing smartphones or tablets.
MSM Corporation and Riva will negotiate a definitive agreement and licences to kick off the Indian version of the talent competition.
Under the rough agreement framework, MSM Corporation will provide Riva with its intellectual property and technical expertise, while Riva will fund and operate Megastar including using its A-list connections within Indian entertainment and media.
“Riva is an exceptionally well-credentialed partner for the operation of Megastar in several key growth markets,” MSM Corporation chairman Adam Wellisch said.
“The opportunity to grow the Megastar brand in Asia and other key markets is a huge step towards solidifying Megastar as the world’s leading mobile-first talent and entertainment program,” he added.
MSM Corporation has spent 12 months researching various territories and popular genres prior to making India’s Bollywood the company’s next expansion phase.
According to MSM Corporation, a large influence on its decision-making is finding the right partner and ensuring the partnership has aligned values.
In additional to shared values with MSM Corporation, Riva has experience in licensing agreements, with existing agreements in place with Dreamworks, Marvel, Sony Pictures and many more.
A binding agreement between the parties is due to be finalised within 90 days, which will cover funding and licence fee obligations.
MSM Corporation hit the United States and Australian markets only three months ago, with the app available to US consumers on 30 September and Australian viewers on 1 October.
In its first month, MSM Corporation’s engagement metrics shot through the roof exceeding industry engagement averages by up to 400%. According to MSM Corporation, these metrics are the leading indicator for measuring a digital entertainment product’s success.
Additionally, the company reported receiving a “significant” increase in the quality and number of performers, with more than 4,300 entrants accepted in the first four heats.
Other positive indicators included more than 230,000 downloads and the Megastar app appearing next to entertainment majors such as Netflix, YouTube, Hulu, Amazon Prime and Fox Now.
After emerging from its trading halt this morning, MSM Corporation’s share price shot up 20% to A$0.17, before following other small cap stocks on the red slide sitting at A$0.13 in late afternoon trade – a 23% fall from the morning’s peak.