Dolby Laboratories, Inc. DLB recently announced the launch of a self-service interactive platform for software developers to spur creativity within media content for an immersive experience. Dubbed Dolby.io, the platform will aid businesses, developers and content creators to gain control over quality and engagement that third-party providers often fail to offer in order to enhance the audiovisual experiences in their apps and services.
The new offering has seemingly addressed the lack of an interactive platform for customers to communicate directly with the company, as erstwhile users had to navigate through a rather complicated and manual process. Dolby.io has an API (application program interface) centric developer service. It currently offers two sets of APIs — one analyzes and improves the sound of an existing audio file and the other introduces novel audio capabilities to enrich the sound effects.
Dolby.io empowers users who often lack the resources and experiences to integrate Dolby’s technologies through a collection of scalable, easy-to-use interactive and media processing APIs. It also offers engaging opportunities for developers to introduce these aspects in other industries, such as healthcare, distance learning, digital collaboration, online training, podcasting and social media.
The platform is initially offered to new users for a free trial, which includes 30,000 interactivity minutes and 200 media processing minutes. The company will charge 0.45 cents per minute per participant beyond the free trial offer for interactivity APIs and 5 cents per minute for media processing APIs.
Dolby’s long-term growth strategy stands on three pillars, namely advancing the science of sight and sound, providing creative solutions and delivering superior experiences. Successful execution in each of these areas has led to decent growth over the past quarters. Dolby has three impressive projects — Dolby Vision, Dolby Voice and Dolby Cinema — which will likely accelerate growth, going forward.
The Dolby Voice technology, an audio conferencing solution, is witnessing solid growth opportunities that are adding to the company’s strength. Apart from expanding its foothold in the traditional audio conferencing market, Dolby Voice is making concerted efforts to bolster its footprint in the budding video conferencing market. Dolby Voice is gearing up for some interesting product launches in collaboration with its partner, BlueJeans. It had inked a partnership with audio conferencing provider, West, to expand this business.
Dolby has maintained its long-standing partnerships with industry frontrunners like Apple Inc. AAPL, Amazon.com, Inc. AMZN and Netflix, Inc. NFLX to offer best-in-class services and fend off competition. With robust financials, the company employs diligent capital deployment strategies for ensuring growth. The capital allocation strategies are designed to maintain a flexible capital structure, deliver value to shareholders through sustainable growth, solid margins, strong cash flows and returning capital. Moreover, Dolby dedicatedly follows a balanced capital deployment strategy and continually rewards its shareholders through share repurchases and dividend increases.
It remains to be seen whether the company can maintain the momentum in the upcoming days amid disruptions caused by the COVID-19 pandemic. Notably, the stock has lost 1.4% in the past year against the industry’s growth of 24%.
Dolby currently carries a Zacks Rank #5 (Strong Sell).
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