SRS Labs Inc. and Coming Home Studios LLC, a Los Angeles––based television and DVD production and distribution company, have announced a Strategic Alliance; their first project together is a concert DVD series produced by Coming Home Studios using SRS Labs’ Circle Surround multichannel encoding technology.
As part of the Strategic Alliance, SRS Labs and Coming Home Studios entered into four agreements: a Strategic Alliance Agreement, a CHS/SRS LLC Operating Agreement, a Warrant Agreement and a Production Services Agreement. Under the Operating Agreement, SRS Labs has made an investment of $1.8 million in a joint venture which will entitle SRS Labs to participate in net profits (after payment of artist royalties) generated from sales of five live music DVD projects that are expected to be released through early 2005. The investment will be recorded under the equity method of accounting in the third quarter of 2004. For additional details regarding this Strategic Alliance, please refer to SRS Labs’ Form 8-K filing, filed with the U.S. Securities and Exchange Commission.
Prior to forming this Strategic Alliance, SRS Labs and Coming Home Studios collaborated on the recent concert DVD, SHOW – A Night in the Life of Matchbox Twenty. In addition to being nominated for a Surround Music Award, SHOW went Platinum in the first week of sales and launched at #1 on the Billboard charts. The second DVD under the alliance, Boz Scaggs’ Greatest Hits Live is also available in stores now.