Dolby Atmos, Vision Set-Tops Seen as Possible Hedge Against Pay-TV Churn

With set-top box deployment declining, Dolby’s penetration of Atmos and Vision should increase as MVPDs redesign offerings to fight churn and improve user experience, Colliers' Steven Frankel wrote investors Friday. Atmos and Vision shifted from either/or adoption decisions by hardware OEMs to a package of technologies delivering a premium experience, Frankel noted, citing Dolby Chief Financial Officer Lewis Chew. The technology company “continues to raise the bar” for audio and video technology with Dolby Vision IQ (see 2001080037) in some 2020 TVs, he said. Upcoming Xbox Series X and S game consoles support Atmos and Vision across all game play, vs. the previous Microsoft console, which only supported Dolby technologies in the Netflix app. Apple’s iOS 14 brings Atmos to AirPod Pro earphones “and could spur Atmos adoption by other wireless headphone makers,” said Frankel. Dolby.io is a “potential game changer,” said the analyst, moving Dolby's technology from hardware to software, allowing access through applications programming interfaces and shifting the revenue model “from per-device to per-use.” Chew referenced early traction with SoundCloud, telehealth and distance learning, said Frankel.