This is from just before she broke as a pop singer. Its a 1982 audition for the hugely popular TV show Fame(or Kids from Fame). She even mentions her "new" song Everybody getting played on radio. In this audition she claims to be 21 but she was actually 24. She thought they wanted somebody younger.
Everybody was released october 1982. Burning up early 1983. Both were big club hits. But it was her 3rd single Holiday released July 1983 that broke her big globally. Her first album Madonna was also released 1983.
The rest is history. Thankgod she never got the part as her music career may have never took off in the way it did. Things happen for a reason.
Incidentally, Janet Jackson did win a role in this TV show. It didnt harm her future music career but she did have the Jackson fame and Michael was at his peak in the mid 80s.