Dolby

Dolby Laboratories, Inc.
Company type	Public
Industry	Audio technology, Imaging technology
Founded	1 January 1965; 61 years ago in London, England
Founder	Ray Dolby
Headquarters	San Francisco, California, United States
Area served	Worldwide
Key people	Peter Gotcher (Executive Chairman), Kevin Yeaman (President and CEO)
Products	Dolby Digital, Dolby Surround/Pro Logic, Dolby SR, Dolby Surround 7.1, Dolby Cinema, Dolby Atmos, Dolby Headphone, Dolby Virtual Speaker, Audistry, Dolby Volume, Dolby Mobile, Dolby Voice
Number of employees	2,080 (2024)
Website	www.dolby.com

Dolby Laboratories, Inc. (commonly known as Dolby Labs or simply Dolby) is a technology firm with British-American roots, focusing on innovations in audio noise suppression, audio encoding and compression, spatial sound technologies, and high-dynamic-range television (HDR) imaging. Operating globally, Dolby licenses its proprietary technologies to manufacturers of consumer electronics, managing worldwide operations from its main office in San Francisco, California. Established in 1965 by entrepreneur Ray Dolby, the company has built a significant market reputation through its cutting-edge products and services.

The firm’s technology suite features prominent audio solutions like Dolby Digital, Dolby Surround/Pro Logic, Dolby SR, and Dolby Surround 7.1, alongside noise reduction innovations. Additionally, Dolby delivers enhanced cinematic experiences under the brand Dolby Cinema. As of 2024, the company reported revenues amounting to US$1.27 billion and a net income of US$262 million, demonstrating robust financial results and successful strategic expansion. Dolby employs roughly 2,080 staff members and includes subsidiaries such as Audistry, Doremi Labs, and Via Licensing within its corporate structure.

Leadership at Dolby includes Executive Chairman Peter Gotcher and President/CEO Kevin Yeaman, who oversee strategic direction and ensure the company maintains its edge in the competitive audio technology sector. The business model centers on licensing proprietary innovations, facilitating wide-reaching influence across entertainment, consumer electronics, and professional audio markets.

History

Founded in 1965 in London, England by Ray Dolby (1933–2013), Dolby Laboratories began with the invention of the Dolby Noise Reduction system, an audio processing technique designed to minimize background hiss on cassette tape recordings. Ray Dolby secured his first U.S. patent for this technology in 1969. Initially embraced by Decca Records in the UK, the system was subsequently licensed to professional broadcasters and studios including the BBC, CBS Studios, RCA, and Granada.

The company moved its headquarters to San Francisco, California in 1976. Its inaugural product was the Dolby 301 unit featuring Type A Dolby Noise Reduction aimed at professional recording environments. Influenced by Henry Kloss of KLH, Dolby developed consumer versions of noise reduction technology, launching Type B in 1968.

In film audio innovation, Dolby identified early on that optical soundtracks suffered from significant background noise that impaired high-frequency response and dialogue clarity. The first film incorporating Dolby noise reduction was A Clockwork Orange (1971), followed by Callan (1974), which was the initial release featuring a Dolby-encoded optical soundtrack. The introduction of Dolby Stereo in 1975 brought multi-channel sound capabilities to cinema; it debuted with Lisztomania. The full four-channel LCRS format premiered with A Star Is Born. Within ten years, approximately 6,000 theaters worldwide had adopted Dolby Stereo technology. This system was later adapted for home entertainment as Dolby Surround and subsequently upgraded to Dolby Pro Logic.

In 1992, Dolby launched Dolby Digital (initially called Dolby Stereo Digital) with the movie Batman Returns, introducing a digital surround sound compression system for theaters. This technology entered domestic markets as Dolby AC-3 on laserdiscs and became a standard feature on DVDs and HDTVs across the United States, significantly expanding Dolby’s market reach.

Dolby became a publicly traded company on February 17, 2005, when it listed on the New York Stock Exchange under the ticker DLB. In 2007, the company introduced Dolby Volume, a solution designed to equalize audio levels across consumer devices.

On June 18, 2010, Dolby unveiled Dolby Surround 7.1, which enhanced surround sound by adding two extra rear channels; this system made its debut with Pixar’s Toy Story 3. April 2012 saw the launch of Dolby Atmos, incorporating overhead sound channels for a more immersive cinema experience; its first implementation was in Pixar’s Brave. That same year, Dolby secured naming rights for Hollywood's Dolby Theatre, home to the annual Academy Awards. By mid-2014, Atmos technology had expanded into home theater setups and television programs such as Game of Thrones.

On February 24, 2014, Dolby acquired Doremi Labs for $92.5 million plus contingent payments, broadening its technological capabilities and corporate footprint.

In May 2015, Dolby reopened Hollywood’s Vine Theatre as a boutique 70-seat venue branded Dolby @ Vine to showcase products and host industry events.

By May 2019, Dolby extended Atmos into music production by integrating it into hundreds of new tracks, reinforcing its leadership in audio innovation.

In May 2020, the company launched Dolby.io, a developer platform providing public APIs that allow integration of Dolby’s media enhancement technologies—including spatial audio and low-latency streaming—into applications worldwide.

To celebrate its 60th anniversary in May 2025, BBC Radio 4 aired Surrounded by Sound: Ray Dolby and the Art of Noise Reduction, featuring interviews with key executives and sound engineers who contributed to the company’s pioneering achievements.

Analog audio noise reduction

Dolby A: a professional-grade noise suppression system designed for analog reel-to-reel tape and cassette formats.
Dolby NR/B/C/S: consumer-level noise reduction solutions tailored for cassette tapes.
Dolby SR (Spectral Recording): a high-end four-channel noise reduction technology that enhances the dynamic range of analog recordings by as much as 25 dB. It is extensively utilized by sound engineers and broadcasters, serving as the standard for analog audio on virtually all 35 mm film prints and providing a fallback option for digital cinema soundtracks.
Dolby FM: an FM broadcast noise reduction system briefly tested in the early 1970s but ultimately discontinued due to minimal uptake.
Dolby HX Pro: a technology that dynamically modifies recording bias to increase tape recorder headroom, improving audio fidelity without requiring decoding hardware.
Dolby Advanced Audio: software designed to optimize surround sound and volume on personal computers, enhancing the performance of built-in speakers while preventing distortion.

Audio encoding/compression

Dolby Pro Logic
Dolby Digital (AC-3): a lossy compression format supporting audio configurations from mono up to 5.1 channels, instrumental in popularizing surround sound. Originally created for theatrical use, it has since been adopted across DVD, Blu-ray, digital television standards (ATSC, DVB-T), satellite services, IPTV, and gaming platforms.
- Dolby Digital EX: expands the channel count with a matrix-encoded rear center surround channel, enabling 6.1 or 7.1 surround setups.
- Dolby Digital Plus (E-AC-3): an enhanced codec compatible with earlier versions, supporting data rates up to 6 Mbit/s; it serves as the standard for HD DVD and is optimized for digital broadcast environments.
- Dolby Digital Live: a real-time hardware encoder that converts audio from PCs or consoles into 5.1 Dolby Digital streams transmitted via S/PDIF.
Dolby E: a professional multichannel audio encoding format designed to transport multiple channels over two-channel infrastructures during post-production and broadcasting workflows; it is converted to Dolby Digital before final distribution.
Dolby Stereo (Stereo A): the original analog optical soundtrack system for 35 mm film prints featuring four discrete channels (Left/Center/Right/Surround) with integrated noise reduction such as Dolby SR.
Dolby TrueHD: a lossless audio codec delivering exact studio master quality with support for up to 7.1 channels over HDMI; employed in HD DVD and Blu-ray media.
Dolby Pulse: an HE-AAC v2 codec augmented with Dolby metadata to ensure consistent broadcast quality; introduced in 2009.
Dolby AC-4: a lossy compression format capable of handling traditional audio channels along with object-based audio elements.
Dolby Atmos: an advanced immersive sound technology combining channel-based and object-based mixing techniques to position audio both horizontally and vertically. First implemented in cinemas with Brave (2012) and later introduced in gaming through Star Wars Battlefront (2015). Delivered as an extension of Dolby TrueHD, Dolby Digital Plus, or Dolby AC-4 streams depending on the platform.

This collection of technologies illustrates the company's pioneering role in advancing audio solutions across various sectors including professional studios, consumer devices, and digital broadcasting. The extensive product suite reinforces its dominant position and competitive edge within the global audio market.

Audio processing

Dolby Headphone: a virtual surround sound technology that recreates 5.1 surround audio experience through stereo headphones.
Dolby Virtual Speaker: technology that emulates 5.1 surround sound using just two stereo speakers.
Dolby Surround, Dolby Pro Logic, and subsequent versions expand audio channels by decoding matrix-encoded surround sound, enabling playback on more speakers than originally recorded.
Audistry: a collection of audio enhancement technologies.
Dolby Volume: technology designed to minimize abrupt changes in volume levels.
Dolby Mobile: Dolby’s surround sound solution optimized specifically for mobile devices, featured in products like the HTC Desire HD and LG Arena.
Dolby Audio Plug-in for Android: an API that allows Android developers to incorporate Dolby Digital Plus technology into smartphones and tablets, including devices such as the Fire HD and Samsung Galaxy Tab 3.
Dolby Voice: professional-grade hardware and software solutions tailored for web conferencing environments.

Video processing

Dolby Contrast improves image contrast on LCD screens by utilizing local dimming techniques on LED backlighting.
Perceptual Quantizer (PQ), standardized as SMPTE ST 2084, supports high dynamic range (HDR) video with luminance levels reaching up to 10,000 cd/m² and adheres to the Rec. 2020 color gamut. It forms the foundation of the HDR10 profile endorsed by the Consumer Electronics Association in 2015 and is widely supported, including within the Windows 10 Anniversary Update.
Dolby Vision is a premium mastering and delivery format for HDR content featuring wide color gamut support (Rec. 2020/2100) from production through playback. It supports resolutions up to 8K, 12-bit color depth, and dynamic metadata that optimizes each scene individually. Dolby Vision is integrated into Ultra HD Blu-ray discs, streaming platforms, and compatible displays, enhancing competitive positioning in the market.
ICtCp color space enhances representation of HDR and wide color gamuts, enabling sophisticated color processing essential for superior video quality.

Together, these audio and video innovations highlight Dolby's commitment to advancing immersive media technologies, strengthening its leadership in consumer electronics and professional content distribution worldwide.

Digital cinema

Dolby Digital Cinema
Dolby Surround 7.1, which made its theatrical debut with Toy Story 3 in 2010.
Dolby 3D
Dolby Atmos
Dolby Cinema, Dolby Laboratories’ premium cinema experience created as a rival to IMAX.

Live sound

Dolby Lake Processor – since 2009, all Lake-branded products have been owned by Lab Gruppen.

Over time, Dolby has launched numerous surround sound systems detailed below.

Dolby matrix surround systems

Decoder	Encoder	Year	Description	Channels
Dolby Stereo	Dolby MP Matrix	1975	Designed for cinema use with optical soundtracks and Dolby A noise reduction; encoded as 4:2 on 35mm film and decoded back to 4.0 channels by the Dolby Stereo Processor; includes a discrete Magnetic 6-Track variant for 70mm film.	FL FR with C and MonoSurround matrixed
Dolby Surround	"	1982	Consumer adaptation of Dolby Stereo; original decoder employed a passive left-right circuit with delay and phantom center channel for three-channel decoding.	FL FR and MonoSurround matrixed
Dolby Stereo SR	Dolby MP Matrix	1986	Enhanced fidelity and dynamic range by adding Dolby SR noise reduction to Dolby Stereo.	FL FR with C and MonoSurround matrixed
Dolby Pro Logic	"	1986 Modern 1987	An active matrix decoder converting Lt/Rt signals back into LCRS four-channel surround sound; reference standard for decoding Dolby Stereo and Dolby Surround formats.	FL FR with C and MonoSurround matrixed
Dolby Pro Logic II	N/A	2000	Converts stereo sources into surround sound with up to 5.1 channels; also decodes Dolby Surround for 5.1 output; consumer decoders offer modes tailored for movies, music, or gaming.	FL FR C SL SR SUB
Dolby Pro Logic IIx	N/A	2002	Builds upon PLII by extending stereo, Dolby Surround, and Dolby Digital 5.1 signals into either 6.1 or 7.1 channels; decodes Dolby Digital EX formats similarly; retains movie, music, and game modes in consumer products.	FL FR C SL SR SUB Left Back Right Back
Dolby Pro Logic IIz	N/A	2009	Further extension of PLIIx; capable of decoding stereo, Dolby Surround, or discrete multi-channel formats (5.1/6.1/7.1) into either seven-channel height configurations or full nine-channel setups with front height speakers; last Pro Logic branded decoder released by Dolby.	L C R Lss Rss Lrs Rrs LFE Lvh Rvh
Dolby Surround (2014)	N/A	2014	Revived terminology describing a frequency-domain decoder/upmixer replacing Pro Logic; accepts inputs from stereo (discrete or matrixed), 5.1, or 7.1 sources and supports output configurations including height channels.

Dolby discrete surround systems

Format	Primary Codec	Introduction Year	Overview	Number of Channels
Dolby Digital	AC-3	1986 (Modern) 1992 (Film) 1995 (Laser Disc)	Encoder/decoder providing discrete channels. Stereo output can be derived from the five main channels through Pro Logic encoding, allowing surround sound playback on stereo setups.	L R C Ls Rs LFE
Dolby Digital Surround EX	AC-3	1999	Offers 6.1 or 7.1 surround sound by matrix encoding the Ls/Rs channels within a 5.1 signal; compatible with standard 5.1 digital formats.	L R C Ls Rs LFE Matrix decoding produces Cs (mono surround) or Lrs, Rrs (stereo surrounds)
Dolby TrueHD	MLP	2006	A lossless compression format supporting up to 24-bit/192 kHz audio and variable bitrates up to 18 Mbps; capable of handling up to 16 audio channels. Employed on Blu-ray discs for up to eight channels at 96 kHz/24-bit and six channels at 192 kHz/24-bit.
Dolby Digital Plus	Enhanced AC-3	2006	A lossy codec accommodating 48 kHz, 20-bit audio with data rates ranging from 32 kbps to 6 Mbps; scalable and expandable to 16 distinct channels; backward compatible with Dolby Digital via S/PDIF at rates up to 640 kbps; supports Dolby Metadata integration.	L R C Lss Rss LFE Lrs Rrs
Dolby Surround 7.1	Not Applicable	2010	Cinematic format that incorporates two extra surround channels to improve spatial audio experience.	L, C, R, Lss, Rss (side surrounds), Lrs, Rrs (rear surrounds), LFE
Dolby Atmos	Cinema: SSLAC; Consumer: Dolby Digital Plus-JOC, MLP, AC-4	2012	Enhances surround sound by introducing overhead channels and audio objects with metadata for accurate positioning independent of speaker configuration. Cinema audio is encoded losslessly as PCM or SSLAC.	Cinema soundtrack includes: L, R, C, LFE, Lss, Rss (side surrounds), Lrs, Rrs (rear surrounds), Lts, Rts (top surrounds). Output adapts dynamically to speaker availability.

ATSC

Dolby Digital's AC-3 codec is designated as the audio standard within the ATSC standards, formalized as A/52 by the ATSC organization. It supports a maximum of five full-range audio channels plus one low-frequency effects channel ("5.1" setup). By contrast, Japan's ISDB HDTV employs MPEG's Advanced Audio Coding (AAC) for comparable 5.1 channel sound, while DVB systems accommodate both codecs.

During the "Grand Alliance" selection process, MPEG-2 audio was considered but ultimately lost out to Dolby AC-3. The Grand Alliance later acknowledged that MPEG-2 was "essentially equivalent" to Dolby's solution; however, this statement came post-selection. Reports indicated that MIT had an arrangement to receive substantial funding if MPEG-2 was not chosen. Furthermore, it was alleged that Dolby offered incentives to Zenith to alter its vote, though confirmation of this transaction remains uncertain.

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