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Dolby Vision 2 Unveils Next-Gen Picture Innovation for Modern Displays

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Key Takeaways

  • Dolby unveiled Dolby Vision 2, its next-gen HDR innovation with new picture quality tools.
  • Hisense and CANAL+ are the first to adopt Dolby Vision 2 across premium TVs and streaming.
  • New features include Precision Black, Light Sense, and Sports & Gaming Optimization.

Dolby Laboratories, Inc. ((DLB - Free Report) ) recently released Dolby Vision 2, the next-generation evolution of its superior picture quality innovation. For more than a decade, Dolby Vision has raised the bar for HDR excellence. With Dolby Vision 2, the firm is enhancing the television experience, aligning with the capabilities of next-generation displays while empowering creators with new possibilities.

Hisense will be the first TV manufacturer to bring Dolby Vision 2 to its premium lineup, including RGB-MiniLED TVs. These will be powered by MediaTek’s Pentonic 800 with MiraVision Pro PQ Engine, the first silicon chip to integrate Dolby Vision 2. This combination promises ultra-wide color, ultra-high brightness and a vivid viewing experience. On the content side, CANAL+ has become the first media and entertainment company to adopt Dolby Vision 2. From blockbuster movies and hit series to live sports, CANAL+ subscribers will soon experience their favorite content in a more immersive way than ever before.

At the core of Dolby Vision 2 is a reengineered Dolby Image Engine, designed to harness the full capabilities of advanced televisions. Combined with Dolby Vision’s expansive content ecosystem, spanning blockbuster films, acclaimed series, live sports and gaming, this next-generation engine delivers every frame with realism, clarity and vibrancy. Another key advance of Dolby Vision is Content Intelligence, a suite of AI-driven tools designed to optimize picture quality based on both the content being played and the viewing environment.

Key innovations include Precision Black, which eliminates “too dark” images, delivering clarity without compromising artistic intent, Light Sense, which uses ambient light detection and source data to fine-tune visuals for optimal viewing in any room, and Sports & Gaming Optimization, which enhances live sports and gaming with better motion control and white point adjustments tailored for high-action content. With bi-directional tone mapping, Dolby Vision 2 gives creators more control, allowing TVs to deliver sharper contrast, brighter highlights and richer colors while preserving the filmmaker’s vision.

Dolby Vision 2 Reaches Beyond HDR Innovation

Apart from HDR, features like Authentic Motion, the first creative-driven motion control tool, allow artists to define how motion is displayed on a shot-by-shot basis, avoiding distracting judder while retaining cinematic authenticity. Also, Dolby Vision 2 will be offered in two product levels — Dolby Vision 2 Max, delivering the ultimate picture on high-end flagship TVs, complete with additional premium features and Dolby Vision 2, bringing next-generation performance to mainstream TVs, powered by the new Image Engine and Content Intelligence.

DLB’s Growth Fueled by Expanding Content, Devices & Cinemas

Dolby continues to see strong engagement across its ecosystem of creators, distributors and device OEMs. In music, more than 90% of Billboard 100 artists now record in Dolby Atmos, with iconic bands like The Rolling Stones, Fleetwood Mac and The Grateful Dead remixing back catalogs. In sports, major global events—including the FIFA Club World Cup, Stanley Cup Finals, French Open, IPL playoffs and World Test Championship—were available in Dolby.

On the streaming front, HBO Max, which delivers most sports in Dolby Atmos and Dolby Vision, is expanding into a dozen new countries, nearing presence in 100 markets. Dolby also strengthened device partnerships, teaming with Samsung, TCL, LG, Lenovo and Google. Notably, Lenovo and Google introduced the first Chromebook with Dolby Atmos, Motorola launched its first phone with Dolby Vision Capture and Xiaomi’s 15S Pro and Civi 5 Pro now support both Dolby Vision and Dolby Atmos. Across music, sports, film and devices, Dolby’s immersive technologies continue to gain momentum.

However, a major chunk of Dolby’s revenues comes from OEMs and licensees integrating its technology, with reliance on a few key customers posing a risk. License agreements often lack minimum purchase or royalty commitments and allow the use of competing technologies, adding further uncertainty. Cinema product sales also fluctuate with industry trends such as new screen construction or upgrades. While Dolby Cinema is gaining strong traction, its performance remains tied to the pipeline and success of films released at its locations.

DLB’s Zacks Rank & Stock Price Performance

DLB currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 2% in the past year compared with the Zacks Audio Video Production industry's growth of 39%.

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Stocks to Consider

Ubiquiti Inc. ((UI - Free Report) ) carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.

Jabil, Inc. ((JBL - Free Report) ) currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 9.44%.

Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.

InterDigital, Inc. ((IDCC - Free Report) ) currently carries a Zacks Rank #2. The company delivered an earnings surprise of 54.27% in the trailing four quarters.

InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses.


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