One clarification based on the clip below.
Our new growth initiatives include Imaging Licensing (comprised of Dolby Vision™ and our patent licensing initiatives related to consumer imaging), Dolby Cinema™, and Dolby Voice®. New growth initiative revenue, which is mostly in licensing, but also includes product revenue for Dolby Conference Phones, was approximately $60 million in fiscal 2017 and is expected to approximately double in fiscal 2018. Key highlights of our first quarter of fiscal 2018 and future challenges related to our new growth initiatives are described below.
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I have been including Atmos and it appears they classify this as an upgrade to their existing audio business. I agree and consider Atmos essential to maintaining and/or growing their legacy business while these new initiatives take root.
Cooters
PS Enough work, time to pop a cold one and get ready for the Super Bowl
For reference, here's the rest of the New Initiative section from the 10-Q
EXPANDING INTO NEW AUDIO AND VISUAL EXPERIENCES
Our new growth initiatives include Imaging Licensing (comprised of Dolby Vision™ and our patent licensing initiatives related to consumer imaging), Dolby Cinema™, and Dolby Voice®. New growth initiative revenue, which is mostly in licensing, but also includes product revenue for Dolby Conference Phones, was approximately $60 million in fiscal 2017 and is expected to approximately double in fiscal 2018. Key highlights of our first quarter of fiscal 2018 and future challenges related to our new growth initiatives are described below.
Imaging Licensing
Highlights:
Dolby Vision is our end-to-end solution for delivering HDR content across TVs, Blu-ray players, smartphones, tablets, DMAs, STBs, and now PCs. At CES in January 2018, additional products with Dolby Vision were announced with both new and existing partners. Over 10 TV partners have announced their 2018 Dolby Vision TVs and many are expanding Dolby Vision into mainstream lines with price points starting at $500, making these devices more accessible to mainstream customers. Sony and Panasonic announced their first UHD Blu-ray players, joining LG, Phillips, and Oppo who launched Dolby Vision Blu-ray players in fiscal 2017. In the PC marketplace, Lenovo recently announced the inclusion of Dolby Vision in two of its ThinkPad X1 Series models, the X1 Carbon and X1 Yoga, which marks the first PCs to support Dolby Vision.
The availability of entertainment content in Dolby Vision continues to grow. Disney, Lionsgate, Paramount, Sony Pictures, Universal, and Warner Bros. have all released content in Dolby Vision and Dolby Atmos for the home, and an increasing number of Blu-ray discs are being released in Dolby Vision and Dolby Atmos. Movie titles and original TV content are also available in Dolby Vision through a number of OTT streaming partners, which include Netflix, iTunes, Amazon, Vudu, Tencent, Rakuten, and iQiYi.
Netflix and iTunes have provided Dolby Vision content to iOS since the release of Dolby Vision in the iPhone X, iPhone 8, iPad Pro lineup, and Apple TV 4K. In the first quarter of fiscal 2018, Tencent also began streaming Dolby Vision content to these devices. iTunes now has over 200 movies available in Dolby Vision, compared to 100 as of the fourth quarter of fiscal 2017, and Netflix now has over 200 hours of original content in Dolby Vision.
Our HEVC and AVC imaging technologies offer efficient delivery of video content across a variety of devices. We are seeing expanded adoption of these consumer imaging technologies, which helped drive increased revenue in the first quarter of fiscal 2018, primarily in the broadcast and mobile markets.
KeyChallenges
: The success of Dolby Vision and our consumer imaging IP initiatives will depend on a number of factors, such as the expansion of available Dolby Vision content, broader adoption of our technologies into mainstream consumer device models, licensing penetration, and competition from alternative technologies.
Dolby Cinema
Highlights
: During the first quarter of fiscal 2018, we opened 20 new Dolby Cinema screens with our exhibitor partners. Our partners include AMC in the U.S., Wanda, Jackie Chan Cinema, CGV, and Huayi Brothers in Asia, Les cinémas Gaumont Pathé, Cineplexx, and Vue in Europe, and Reel Cinemas in the Middle East. In total, 132 Dolby Cinema locations were operational as of the end of the first quarter of fiscal 2018 compared to 66 as of the end of the first quarter of fiscal 2017, and we are on track to open approximately as many new Dolby Cinema locations in fiscal 2018 as we did in fiscal 2017. In addition, approximately 130 theatrical titles with Dolby
Vision and Dolby Atmos have been announced or released with participation from every major studio, and during calendar year 2017, all ten of the highest grossing films in the U.S. were optimized for Dolby Cinema.
Key Challenges:
Although the premium large format market for the cinema industry is currently growing, Dolby Cinema is in competition with other existing offerings. Our success with this initiative depends on our ability to differentiate our offering, deploy new sites in accordance with plans, and attract and retain a global viewing audience. In addition, the success of our Dolby Cinema offering will be tied to the pipeline and success of motion pictures available at Dolby Cinema locations and box office performance generally.
Dolby Voice
Highlights
: Our primary partners in Dolby Voice are: BlueJeans, a leading video meetings platform, West, a leading global audio conferencing services provider, PGi, Highfive, and BT. We continue to focus on expanding Dolby Voice’s availability to the global market for audio and video conferencing services.
Key Challenges
: Our success in this market will depend on the number of service providers and enterprise customers we are able to attract from competing solutions, the number of Dolby Conference Phones that we are able to sell, and the volume of usage of the service. |
