The Tivoli

Live Streaming Service

KCB205 CONSULTANCY
Ally Farmer N8614211
Jess Larder N9111905
Sarah Ryan N6368743
Beth Uttley N9107444
Phone: 07 3345 6789
KCB205@consultancy.com
Web: www.consult.com/KCB205
Tutor: Tim Lindgr

Table of Contents
1.0

Introduction ........................................................................................................................... 1

1.1

Situation ........................................................................................................................... 2

1.2

Objective .......................................................................................................................... 2

1.3

Limitations ........................................................................................................................ 2

2.0

Resources ............................................................................................................................ 4

3.0

Implementation Plan .......................................................................................................... 5

3.1

Implementation of live streaming service ................................................................... 5

3.2

Timeline of Implementation .......................................................................................... 5

3.3

Implementation of Marketing ........................................................................................ 5

3.4

Future Implementation.................................................................................................... 6

4.0

Cost....................................................................................................................................... 7

4.1

Costs of Implementation ............................................................................................... 7

4.2

Costs of UStream at the Tivoli ..................................................................................... 7

4.3

Costs of Marketing ......................................................................................................... 7

5.0

Benefits ................................................................................................................................ 9

5.1

Benefits to the Tivoli ...................................................................................................... 9

5.2

Benefit to Clientele ......................................................................................................... 9

5.3

Benefit to Artists and Performers................................................................................. 9

6.0

Evaluation .......................................................................................................................... 10

7.0

Conclusion ......................................................................................................................... 11

List of References........................................................................................................................ 12
Appendix 1:

SWOT Analysis ................................................................................................. 13

The Tivoli: Live Streaming Service Proposal

Appendix 2:

Marketing Research ......................................................................................... 14

Appendix 3:

Implementation Timeline .................................................................................. 15

Appendix 4:

Profits (excluding start up costs) .................................................................... 16

Appendix 5:

Cost of Live Stream .......................................................................................... 17

Appendix 6:

Cost of Equipment ............................................................................................ 18

Appendix 7:

Cost of Advertising ............................................................................................ 19

The Tivoli: Live Streaming Service Proposal

ii

1.0

Introduction

An entertainment hub, historic icon and part of Brisbanes cultural identity, the Tivoli is
an entertainment venue that provides visitors with a once in a lifetime experience. This
proposal outlines the Tivolis current position in the entertainment industry and aims to
provide the business with an opportunity for economic growth and longevity by
integrating Live Streaming technology to the Tivolis current operations.

Figure 1. The Tivoli Venue (Weinberg 2014)

The Tivoli: Live Streaming Service Proposal

1.1

Situation

Located in Fortitude Valley, the Tivoli was built in 1917 and has housed entertainers for
decades. A fully licensed theatre with state of the art technical features and in house
catering, the Tivoli is a popular venue for hosting entertainment in Brisbane. Currently
the Tivoli offers catering and theming for personal events as well as the hottest local and
touring acts.

In order to identify opportunities for the Tivoli, a SWOT analysis (Appendix 1), was
utilised to identify the companys strengths, weaknesses, opportunities and threats
(Grewal et al., 2014). The Tivolis current weakness is its limited capacity, 1500 ticket
maximum per show. Therefore the Tivoli is restricted to limited attendance and capped
profitability. The opportunities for the Tivoli are broad, however it is suggested that a Live
Streaming Service be introduced as a way of broadening the Tivolis clientele and
maximising profitability.

1.2

Objective

The objective of this proposal is to persuade members and partners of the Tivoli, that the
opportunity to introduce a live streaming service to their current business would enhance
revenue opportunities and broaden clientele. The main objectives are:
1. Increase venues revenue
2. Broaden the venues clientele
3. Maintain longevity of venue

1.3

Limitations

Concerns that potentially restrict the success of the live streaming service include:

Peer to peer illegal sharing or piracy,

Performers contracts,

Internet and broadband speeds,

The Tivoli: Live Streaming Service Proposal

Price of service.

Solutions have been devised to mitigate these problems and to protect the Tivoli. These
include the incorporation of a watermarked logo (copyright) across all live stream videos
in order to avoid dissemination of performers recordings resulting in infringement and
intellectual property rights.
Furthermore, inclusion of a liability waver in the terms and conditions protecting the
Tivoli from any intellectual property issues as well as discouraging piracy such as peer to
peer (P2P) media sharing such as torrenting.
Recordings will be copyrighted to protect the performing artist and separate contracts
drawn for performers, including confidentially clauses, to ensure the Tivoli is protected,
as is privacy of all artists.
A variety of stream options such as high definition video, standard definition video and
audio only options will be implemented to ensure quality of service.
Implementation of marketing with a focus on advertising key benefits of the service, both
locally and regionally, will counteract results of marketing research which suggest 28%
of people would pay $10-$15 (Appendix 2).

The Tivoli: Live Streaming Service Proposal

2.0

Resources

Introduction of a live streaming service is intended to provide the Tivoli the most feasible
and low risk opportunity. KCB205 consultants utilised both primary and secondary
resources to assess the potential for the Tivoli to successfully facilitate this proposal.
During preliminary planning KCB205 consultants aimed to identify the main start up and
fixed costs in order to establish a live streaming service with the goal to further enhance
the stream in the future.
KCB205 consultants conducted interviews with members of the Brisbane community as
well as individuals from surrounding areas of southeast Queensland, providing insight to
the potential live streaming market. These findings were supported by online secondary
sources such as the Tivolis website, social media services and review and rating
websites. Information, comparisons and research on live streaming, as well as case
studies on other venues successful live streaming integration were utilised to ensure
maximum potential for the Tivolis successful live streaming integration.

The Tivoli: Live Streaming Service Proposal

3.0

Implementation Plan
3.1

Implementation of live streaming service

The service chosen to provide an online live streaming service for the Tivoli is UStream.
UStream is the preferred streaming provider because it can be tailored to small
businesses and is entirely customisable at a lower cost in comparison to competitors
(UStream, 2014).
The process of implementing a live streaming service for the Tivoli is straightforward and
efficient. The Tivoli currently owns some of the audio and lighting equipment required;
significantly reducing implementation costs. Reducing overall implementation time,
Usteam provide a one-on-one consultant as part of the monthly subscription therefore
alleviating difficulties with implantation.

3.2

Timeline of Implementation

The timeline (Appendix 3) of implementing a live streaming service is estimated to take

up to one month. Creating a customised service with the help of UStream is an online
process, whilst working with a consultant and would take approximately three weeks.
Amendments to the Tivolis current webpage would include embedding UStream and
setting up PayPal; this is estimated to take one week. During the implementation
process hiring a staff member would commence.

3.3

Implementation of Marketing

A low cost, high reward marketing plan for the Tivoli is suggested below:

Facebook and Twitter advertising campaign,

Current Tivoli customers to receive email offers and exclusive deals,

Distribution of flyers and posters around universities, schools and public

transport systems throughout Brisbane and surrounding regions,

The Tivoli: Live Streaming Service Proposal

Commencement of radio advertisements.

3.4

Future Implementation

Suggested below are possibilities which could be implemented to further increase

revenue and popularity for the Tivoli after the first year of the live streaming service:

Applications for smartphones and tablets to view live streams,

Creation and distribution of DVDs,

12-month subscription service and,

A database of past events for a one-off cost.

The Tivoli: Live Streaming Service Proposal

4.0

Cost
4.1

Costs of Implementation

Currently the Tivoli runs approximately twelve events per month, as the UStream would
be operational multiple times per week, including uploading recordings, it is advised a
casual employee be hired solely to run the Ustream (Appendix 4). UStream charges a
monthly fee of approximately $2500 (Appendix 5).
To ensure the service is run at maximum performance and efficiency, quality equipment
is preferred. The overall cost of equipment is $19,850 however; this figure includes
optional audio and filming equipment. An outline of specific costing and equipment
requirements for audio and visual equipment can be found in Appendix 6.

4.2

Costs of UStream at the Tivoli

It is estimated that 200 people per week would log on to watch an online event. In order
to appeal to customers a first month special subscription price of $9.99 per stream
watched would be advertised, this would increase to $14.99 per show after the first
month.
It is estimated that a net profit of approximately $424,140.60, would be gained in the first
year. The introduction of the UStream would gain the Tivoli an extra $8156.55 per week
(Appendix 4).

4.3

Costs of Marketing

It is estimated that the total cost of marketing would be $3400. This includes:

5000 A4 and 50 A1 flyers,

20 radio advertisements.

For further cost breakdown, see Appendix 7.

The Tivoli: Live Streaming Service Proposal

Figure 2. An example flyer

The Tivoli: Live Streaming Service Proposal

5.0

Benefits
5.1

Benefits to the Tivoli

There are three main benefits the live streaming service would offer the Tivoli. Firstly, by
introducing the service the Tivoli could reach audiences who normally could not or would
not travel to the venue. Secondly, the service would enable persons under eighteen to
engage in performances as they would not be entering the venue. Finally the live
streaming service would ensure longevity for the Tivoli providing other avenues for
customers to be involved in performances.

5.2

Benefit to Clientele

Clientele would benefit from the live streaming service for a number of reasons, as
stated above it would mean anyone wishing to see a performance despite, age or
distance could engage with shows at the Tivoli. Furthermore, clientele could do so from
their own home, hosting Tivoli Party events and sharing the moment uninterrupted with
friends and family. The other major benefit to clientele is a lot of small gigs and acts do
not do tour DVDs and often tailor performances to the target audience and venue they
perform at, live streaming allows all viewers the opportunity to engage in the moment as
it happens.

5.3

Benefit to Artists and Performers

The benefits of a live streaming service extend beyond those of the Tivoli and its
clientele; they extend to the artists and performers too. Due to an increase in the number
of tickets sold per performance, artists benefit from the service as they would be
performing virtually to a larger audience. This provides the opportunity for them to gain
more coverage than the venue could provide numbers for.

The Tivoli: Live Streaming Service Proposal

6.0

Evaluation

Evaluation of new venture for the Tivoli will be measurable through the following:

Increased revenue and profit,

Feedback surveys completed by live stream viewers via email,

Increased online activity from customers and increased following on

social media platforms,

Public, Industry and Media response toward the project.

The Tivoli: Live Streaming Service Proposal

10

7.0

Conclusion

In summary, the development of this proposal aims to provide the Tivoli with an
opportunity that is low risk and potential to generate a high return. Not only will it provide
another revenue for the Tivoli but also provide opportunities to reach a broader market.
By introducing the latest streaming technology, the Tivoli will demonstrate its place in the
changing industry, setting a benchmark for entertainment.

The next step for the Tivoli to get this project underway is to contact KCB205 consultants
and arrange a meeting to discuss implementation and any present concerns.
Implementation of the project is achievable within a month therefore the Tivoli, upon
actioning contracts could see the live streaming service operational by early February
with an implementation commencement date of January 1st.

This exciting opportunity is prepared and complete for the Tivoli to take advantage of
and KCB205 consultants are ready to assist the Tivoli on this journey. KCB205
consultants look forward to bringing the Tivoli into the 21st century in a way which will
impress customers and leave the Queensland entertainment industry in awe.

The Tivoli: Live Streaming Service Proposal

11

List of References
Farmer, A; Larder, J; Ryan, S; Uttley, B, (2014). The Tivoli From Home. [Unpublished
Raw Data].
Grewal, D., Levy, M., Mathews, S., Harrigan, P., Bucic, T. (2014). Marketing. North
Ryde, NSW: McGraw-Hill Education
Survey Monkey, (2014). SurveyMonkey. [online]. Available at:
http://www.surveymonkey.com [Accessed 2 Aug. 2014].
The Tivoli, (2014). The Tivoli [online]. Available at: http://www.thetivoli.net.au/ [Accessed
12 Oct. 2014]
UStream, (2014). Ustream The Leading HD Streaming Video Platform. [online].
Available at: http://www.ustream.tv [Accessed 12 Oct. 2014].
Weinberg, K., (2014.) Can't Wait to see Bob Dylan at the Tivoli [image]. Available at:
http://instagram.com/p/sMYPQPkgeB/ [Accessed 22 Oct. 2014]

The Tivoli: Live Streaming Service Proposal

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Appendix 1:

Strengths
Location
Pricing of
tickets
Occurrence of
events
Artists and
performers

SWOT Analysis

Weaknesses
Capacity/venue
size
1500 ticket
Age limitations

The Tivoli: Live Streaming Service Proposal

Opportunities
Live streaming service
Subscriptions to live
stream
Tivoli Library access
past shows for fixed
price (think iTunes)
Mobile apps
DVDs

Threats
Other entertainment
venues
Festivals

13

Appendix 2:

Marketing Research

The Tivoli: Live Streaming Service Proposal

14

Appendix 3:

Implementation Timeline

The Tivoli: Live Streaming Service Proposal

15

Appendix 4:

Profits (excluding start up costs)

$9.99 first month special

Cost Per View

$14.99 Average show cost

Expected Views Per Stream Per Week

200

Average Streams Per Week

3
Per Week = $8994

Gross Profit

Per Month = $35976

Per Annum = $467,688
$537.45 per week

Cost of Streaming Service Per Annum

$2328.95 per month

$27,947.40 per annum
5 hours x $20 x 3
$300 per week

Cost of Employee
$1300 per month
$15,600 per annum
Per Week = $8156.55
Net Profits

Per Month = $32347.05

Per Annum = $424,140.60

The Tivoli: Live Streaming Service Proposal

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Appendix 5:

Cost of Live Stream

Plan

UStream Enterprise Plan

Yearly Cost

$27,947.40 approx.

Ongoing Cost

Custom Plan starting at $2500 AUD per month

Custom Audience Size
HD (1080p)
Advanced security
Custom branding control
Mobile optimized
Advanced social features
Dedicated event support
Production services
Custom Feature Development

Services Offered
API Access
Post Event Reports
Unlimited Storage
No adverts
Video Upload
Easy to embed into site/webpage
Can be accessed on Android and Apple devices
Can create a Pay Per View events with Paypal
One on one consultancy service available

The Tivoli: Live Streaming Service Proposal

17

Appendix 6:

Cost of Equipment

Equipment

Product Information

Camera

Recommended = 2 x Canon XF305

Audio

(Tivoli already owns

audio equipment
required)

Cost
$5525 per camera

External Microphone
Audio Mixer
XLR Cables
RCA Cables

Filming

Encoder UStream Producer

(Filming equipment is
optional)

Live Production Switcher LiveStream

Studio HD31
Capture Device Black Magic Intensity

Total Cost of Equipment

The Tivoli: Live Streaming Service Proposal

$0

$0
$4500
$4300

$19850

18

Appendix 7:

Cost of Advertising

Advertising
Email Notifications

Information
Notifying customers of upcoming events
A5/115gsm Gloss/Full Colour One Side/5000

Flyers

$0
$286

http://www.printroom.com.au/flyers-quoted.php

A1/$22 per poster/50 posters

Posters

http://www.officeworks.com.au/shop/officeworks/Print-AndCopy/Standard-Colour-Posters

Social Media

Facebook, Twitter, Instagram, YouTube, Blogs

Website Update

New webpage to embed stream into

Radio advertising

Cost

Brisbane
Gold Coast
Northern QLD
Regional QLD

$1100

$0
-

$2000

20 advert plays during 6am to 6pm at $100 per advert

http://www.australiatrade.com.au/Radio/Advertising/rates.htm
Total Cost

The Tivoli: Live Streaming Service Proposal

$3386

19