Dolby Laboratories (DLB) Rosenblatt’s 4th Annual Technology Summit - The Age of AI (Part II) summary

Business overview and technology leadership

• Focus on immersive experiences in audio and video, evolving from foundational audio to premium technologies like Dolby Atmos and Dolby Vision.

• Strong relationships with content creators and device makers drive adoption and innovation.

• Premium technologies enable precise spatial audio and enhanced HDR visuals, differentiating the user experience.

• Business model centers on providing creative tools for free and monetizing playback technology in devices.

• Expansion into live sports and broader content types is accelerating adoption.

Market penetration and growth drivers

• High attach rates for premium technologies in high-end TVs, with growth targeted in mid-market and entry-level segments.

• Automotive sector moving from luxury to mass-market adoption of Atmos, with technical R&D enabling broader implementation.

• Premium licensing revenue (Atmos, Vision, Imaging) is growing faster than foundational audio, now over a third of licensing revenue.

• Growth in premium technologies less sensitive to macroeconomic trends, with double-digit growth expected.

• Device wins in auto, mobile, and regional TV brands are key to future growth.

Competitive landscape and partnerships

• Alternatives exist but lack Dolby’s ecosystem and brand strength.

• Samsung has resisted Dolby Vision, favoring its own HDR10+, while other brands adopting Dolby are growing faster.

• Apple is a key innovation partner, integrating Dolby across its product lineup and collaborating on future experiences.