Speaking on BBC Radio 1's Jo Whiley show, she said youngsters just wanted to become famous, without giving thought to developing any specific talent.
Minogue said there had been a radical change in outlook, encouraged by shows like the two ITV talent shows, plus the BBC's Fame Academy and Channel 4's Big Brother.
"Fame used to be a by-product," said Minogue, who was herself a child actress before becoming a star in TV soap Neighbours.
"We can look at it and see a little bit more clearly what's happening, but for teenagers that's the kind of TV they've had for the last five years.
"It's like 'What do you want to do when you grow up? I want to be famous'. What for? It doesn't matter.'"
She said she found the situation "frightening".
"You should have your ambition to do something before that," she added.
Minogue's comments follow Robbie Williams' dismissal of TV talent shows.
He branded them "cruel" for "messing with people's lives".
Williams was also critical of Popstars: The Rivals for asking losers to sing seconds after they had been voted off the show.