SRSWowcast Drops Original Programming

Audio technology company SRS Labs announced it will be refining its business direction to focus solely on a licensing and ASP model, in an attempt to become profitable. Specifically, the company has ceased production of original programming for its online entertainment arm SRSWowcast.com.

Launched last summer, SRSWowcast ( www.srswowcast.com) features on-demand music videos, movie trailers, radio channels and celebrity interviews. Most notable of SRS's original programming is the streaming talk show "Competitively Incorrect," hosted by former ABC sportscaster Jim Lampley.

Tom Yeun, chairman and CEO of SRS Labs, said that while the new direction clearly acknowledges the high costs and limited revenue of original programming, the company's decision is based on its intent to return to core competencies. "Our strength and heritage is the design and license of audio and video technologies and our goal is to become the supplier of these technology tools to the Internet and wireless markets," said Yeun.

SRSWowcast will continue to feature some entertainment programming (though not originally produced), and will promote and sell consumer electronics such as TVs, DVDs and headphones sold by customers who have licensed SRS Labs hardware. According to a release, SRSWowcast will soon unveil a new company name that better reflects the renewed concentration on technology.

SRS Labs exclusive focus on the B2B market is not an isolated trend. In recent months, many companies have abandoned strategies to drive traffic to destination sites, in order to focus on the more lucrative ASP market. Most recently, companies such as Myplay, MeTV.com and Yack have altered business strategies in this direction.