No Dolby in Windows 8; Shares Tumble
DLB shares have been down more than 18% today on news that the company's digital surround-sound technology would not be included in Microsoft's next OS.
Microsoft is not including Dolby audio technology in Windows 8, according to Dolby Laboratories (NYSE: DLB). Dolby shares are taking a beating today after the company revealed the news to analysts yesterday (transcript).
Currently, Dolby shares are down 18% (see chart below).
So will Dolby cede the PC audio business to others and just focus on high-performance 11-channel audio, as with the new Neo:X format? Not hardly.
According to Forbes, Dolby says that if Microsoft ultimately does not include its technology in Windows 8, the company will license its DVD playback technology directly to PC makers and software vendors.
In the earnings call, Dolby CFO Murray Demo explained:
In the PC market, the broad adoption of optical drives has driven the inclusion of Dolby technologies on many of the world’s PC shipments.
“We work with operating system providers, ISVs and OEMs to support DVD on the PC. In recent years, our mix of PC licensing revenue has increasingly shifted towards the operating system as our technologies are included in 4 editions of Windows 7. However, we have recently learned that our technologies are not currently included in the Windows 8 operating system under development. If our technologies are not included in the commercial version of Windows 8, we expect to support DVD playback functionality by increasingly licensing our technologies directly to OEMs and ISVs, and we will seek to extend our technologies to further support online content playback.
Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. She's a washed-up Ultimate Frisbee player currently residing in Carlsbad, Calif. Email Julie at [email protected]
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