My understanding of Simon Fuller's idea is that it would be for established singers or bands who had already had record contracts and lost them for some reason or other to get another chance.
I don't think it's aimed at those who've entered Pop Idol, Popstars, etc. but failed to reach the final stages. That would be crazy, because it's already been established that they're not good enough (winner of Pop Idol excluded!

)
Only my view ..................