'X Factor' Winner to Receive $5 Million Dollars and Contract With Simon Cowell (Watch the Trailer)

Simon Cowell may be smiling (or smirking), but to be honest, he's a little nervous about his newest show "X Factor."

While "American Idol" promised a $1 million dollar prize, Cowell announced that the new show will offer a whopping $5 million dollar prize. The show will also lower the competing age from 15 to 12, and the winners will get a recording contract with the Syco label, Cowell's joint venture with Sony Music.

While the prize will doubtlessly bring out talent, Cowell acknowledges there are significant risks involved. The host/producer was surprisingly honest in a recent MTV interview about the upcoming show and what it will be.

"I think you should be nervous. The reason we decided [on the major deal] is to show the people who are auditioning that sometimes you have to put your money where your mouth is," Cowell said of the prize, which will be paid out over five years.

"Putting up that amount is a massive risk. It puts everyone under an enormous amount of pressure. But with that pressure, you have to find a star. I'm nervous, but I'm also confident. It's a life-changing prize."

"X Factor" doesn’t begin until the fall of 2011 in the US.

There are no judges picked for this panel yet, despite rumors to the contrary. Simon did hint that Paula Abdul might be in the running, however.

Who else would you like to see as a judge? What would you do for $5 million dollars? Do you have what it takes to make that kind of scratch? What's your "X Factor"?

Watch the "X Factor" Trailer