SRS Labs Inc. a provider of innovative audio, voice and semiconductor technology solutions and Coming Home Studios LLC, a Los Angeles-based full-service television and DVD production and distribution company, announced that they have formed a strategic alliance to co-promote SRS’s technologies, Coming Home Studios’ productions and each other’s respective brands to consumers and SRS Labs’ OEM Channels worldwide. The first project is a series of concert DVDs produced by Coming Home Studios LLC using the SRS Labs’ Circle Surround multichannel encoding technology.
The Strategic Alliance brings together SRS Labs’ state-of-the-art surround sound technology and Coming Home Studios’ music DVD productions to deliver live music concert DVDs while exposing the SRS brand to millions of consumers. 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.
“I believe this is a win-win situation, where both companies can jointly benefit from this partnership,” said Thomas C.K. Yuen, chairman and CEO of SRS Labs. “We believe that this exposure, coupled with our other branding efforts, will have the effect of increasing customer awareness so that they look for the SRS brand in more of the consumer electronics products they purchase. At the same time, we can promote Coming Home Studios’ DVD products and recording artists to our broad channel of consumer electronics manufacturers and their customers.”
Daniel Catullo III, president and CEO for Coming Home Studios said, “Now, with each new music DVD project released under this new partnership, consumers can experience the closest thing to a live concert right in their living room. In working together with SRS, we can deliver the highest quality concert DVDs from today’s hottest recording artists and yesterday’s music legends.”
As part of the Strategic Alliance, SRS Labs and Coming Home Studios entered into four agreements: a Strategic Alliance Agreement, CHS/SRS LLC Operating Agreement, 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.