Dolby.io a 'Game Changer' That Moves Beyond Devices: Colliers

Dolby.io is a “game changer” that expands Dolby's addressable market and creates a recurring revenue-based business, Colliers analyst Steven Frankel wrote investors Thursday to preview the company’s July 29 quarterly earnings report. The platform also expands Dolby’s reach to applications, moving beyond the traditional focus on devices. Dolby's virtuous cycle is driving broader adoption of Vision and Atmos, “leading to more content supporting these formats which, in turn, drives more device adoption,” Frankel said. The analyst cited “significant advancements” for Dolby with Apple’s May announcement that it was rolling out Atmos Music for no additional charge to Apple Music subscribers and said, “We expect Spotify to follow suit” in the fall. Spotify didn’t comment. Wider deployment of Atmos Music will spur further adoption of Atmos in smart speakers and headphones, he said. Dolby got another shot in the arm from Comcast’s announcement (see 210714003) that X1 customers can experience the Tokyo Olympics in 4K Vision and Atmos, the first North American delivery of live sports in the two formats: “We suspect the number of live sporting events available in Vision/Atmos is likely to grow.” Colliers’ model calls for Q3 FY 2021 revenue of $286.9 million vs. management’s $260 million-$290 million.