MUSICAL REALITY

Keegan BlankAshley Olson

BUSINESS OVERVIEW

• Streaming live music from large to small venues across Canada

• Using a high definition technology most commonly used for business conferencing called “Teleprescence”

BUSINESS OVERVIEW

• We obtain live music feed from large promoters who hold the rights to each show

Live feed from Rogers Centre

Odeon Events Centre

The Distrikt

Vancouver

Saskatoon

Regina

Marketing Strategy

NETWORKING

1. Small venues• Renting out the Odeon and the Distrikt

2. Large Promoters• Rent out and market the show for bands for the

entire tour• Have rights to the live show• Charge us for the audio & visual feeds• $500 per small venue show

Local Music Fans from Saskatoon & Regina• Brand new experience• Still get the interaction of music goers• Comparable to the cost of going to a movie

– roughly $20• Goal: 150 fans in attendance per show

TARGET MARKET

• Use similar strategy to how promoters market live bands

MARKETING

Financials

COST/SHOW

Renting the Eventplex

$350

Security

$390

Lights and Sound

$450

Sound Technician

$200

Marketing

$400

Cost for Live Feed/show

$500

IT Staff $240

Total Cost $2,530

PROFIT/SHOW

2012 2013 2014 2015 2016

Number of Customers/show 150 150 150 150 150

Ticket Price $20.00 $ 20.50 $21.01 $21.54 $22.08

Revenue/show

$3,000 $3,075 $3,152 $3,231

$3,311

Cost Per Show

$2,530 $2,577 $2,646 $2,706

$2,782

Profit per show $470 $498 $506 $525 $529

EXPANSION

2012 2013 2014 2015 2016

Number of Small Venues 2 2 3 4 5

2012 2013 2014 2015 2016

Equipment

$162,957 - $58,200 $58,200 $58,200

Working Capital $15,065 - - - -

Total Equity Investments $178,022

Capital Budget

• Based on 8 shows per month at each small venue

PROJECTED PROFIT

2012 2013 2014 2015 2016

Gross Profit $184,320 $188,928 $315,692 $448,676 $588,112

Operating Expenses $171,985 $195,534 $241,427 $308,862 $376,431

Net Income $12,335 $(6,606) $74,265 $139,813 $211,681

• IRR (non-leveraged)= 59.1%

• Marketing strategy combined with technology and new experience

• Profitable business venture

IRR & FEASIBILITY

Questions?