Back to top

Image: Bigstock

Dolby-Hunan Broadcasting to Bring Content Production in China

Read MoreHide Full Article

Dolby Laboratories, Inc. (DLB - Free Report) recently inked a strategic partnership agreement with Hunan Broadcasting System. The agreement aims to bring state-of-the-art Dolby Vision and Dolby Atmos content production capability to Hunan Broadcasting in Beijing, during China Content Broadcast Network tradeshow.

Hunan Broadcasting’s Post Production Base will produce premium TV programs, powered with Dolby Vision HDR and/or Dolby Atmos immersive audio.

The company is enjoying widespread industry adoption of Dolby Vision and Dolby Atmos across the world. Also, Dolby Vision is witnessing increased adoption in Blu-ray players as Sony and Panasonic announced their first Dolby Vision players, joining the league of LG, Phillips and OPPO.

Apple and Netflix (NFLX - Free Report) have been providing Dolby Vision content to IoS since the release of iPhone 10, iPhone 8, iPad Pro and Apple 4K TV. This is a huge boost for the company, as Apple's adoption will considerably increase the accessibility of Dolby Vision experiences to customers across the world. Furthermore, Amazon (AMZN - Free Report) started streaming in Dolby Vision and joined the likes of Netflix and Vudu. Both Amazon and Netflix have original content available in Dolby Vision.

Based on current industry trends, the company is confident that Dolby Vision’s growth momentum will accelerate over the long haul. Meanwhile, Dolby Cinema technology proved to be a major profit churner for the company. For instance, in the first quarter fiscal 2018, the company added about 20 Dolby Cinema screens, bringing the aggregate to 133 Dolby Cinemas across the world and has plans to open another 360 or more.

Per market reports, consumers are increasingly viewing video content on smartphones, tablets and computers, which is expected to unlock growth opportunities for Dolby. However, shares of this Zacks Rank #3 (Hold) company have gained 15% in the past six months, underperforming the industry’s average rally of 19.9%.

Soft sales of PCs, DVD, Blu-ray and home theater equipments in fiscal 2018, might affect the company’s top-line growth.Also, Dolby anticipates lower recoveries in broadcast business in fiscal 2018 to offset other catalysts and hinder growth.

This apart, maturity of the digital cinema market exposes Dolby to a number of risks that include pricing competition and development of cheaper products by competitors. Further, free and proprietary sound technologies are being increasingly adopted by clients. The company apprehends that competitors will soon foray into this space with other offerings, threatening its market share

Stock to Consider

A better-ranked stock from the same space is Sony Corporation sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sony has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 79.8%.

Can Hackers Put Money INTO Your Portfolio?

Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.

Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.

Download the new report now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Dolby Laboratories (DLB) - free report >>

Netflix, Inc. (NFLX) - free report >>

Published in