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CEO: Dolby Relevant in Non-Physical Media World

14 Mar, 2012 By: Erik Gruenwedel

Dolby Laboratories is set to increase revenue from the growing subscription video-on-demand market, CEO Kevin Yeaman told an investor group recently.

Speaking March 7 and 8 at a William Blair & Co. event in New York, Yeaman said Dolby generated 52% of its $790 million 2011 license digital audio revenue from non-optical media (movie and music discs), including digital TVs, set‐top boxes and mobile phones — up 27% from 2010.

During the year the company licensed its Dolby Digital‐Plus with streaming providers Amazon Prime, HBO Go, Netflix and Vudu, as well as integration with Qualcomm’s Snapdragon chip, which should facilitate more connected devices for a better audio experience.

The remaining 2011’s licensing revenue came from PCs, consumer electronics and video game systems.

Dolby generated about $83.2 million in cinema related product sales — down 35% from cinema revenue of $126.5 million in 2010. The company expects to grow market penetration into smartphones to the mid-teen percent from 4% in 2010.

“We decreased the optical business [outlook] by 25% in fiscal 2014, 15% in fiscal 2015, and 10% in fiscal 2016,” William Blair analyst Ralph Schackart wrote in a March 9 note.

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