Originally Posted by Cinema Squid
This I think is really the main takeaway.
If there really is a Sony (and possibly Warner) move to DTS-MA happening, however, it's sort of a shame for TrueHD since they never really consistently pushed the format to the wall with 16-bit tracks and 448kbps embedded AC3 riders being far more common than they should have been. How many DTS-MA 16-bit tracks w/ 768kbps cores have we seen in the States? Yeah, not very many...
Which has nothing to do with the codec, and everything to do with the content providers (mainly WB, and we see how well they are doing with their video encodes
). But it has everything to do with perception.
I know where the Watchmen DTS-HD MA track "came from" so I don't think you can say that WB is switching at this point... I'd be surprised if it does happen.
I do think, in the overall scheme of things, that there really isn't anything too bad about it for Dolby, however.
They will still make, unit for unit, a royalty on every decoder sold, and have an almost monopolistic market outside of BR (i.e. Apples AAC, car DVD players/entertainment centers, etc..)
And that's not to mention their cinema products (Dolby Digital Cinema, Dolby 3D) or all of the encoders for broadcast.... not to mention the fact that they just brought Dolby Volume and PLIIz to market, products for which DTS has no analog, hence no additional licensing revenue.
The lack of DTS titles on DVD didn't stop manufacturers from incorporating the decoders in their players and decoders/AVR's/SSP's....
I just don't think that Dolby finds a relevant reason to try and push their codec when they will make the same amount of money if they do or don't.
All pure speculation and opinion on my part.
EDIT: I just saw the press release for DTS' 2nd quarter earnings:
For the second quarter of 2009, DTS reported revenue of $24.2 million, and net income from continuing operations of $3.6 million, or $0.21 per diluted share. This compares to revenue of $12.8 million and net income from continuing operations of $1.4 million, or $0.07 per diluted share, reported in the second quarter of 2008. Excluding the settlement of litigation matters, adjusted revenues were in excess of $14 million for the second quarter of 2009. Second quarter 2009 results included $6.1 million in Zoran litigation expenses.
The second quarter of 2009 results included $1.4 million, or $0.5 per diluted share net of tax, in stock-based compensation expense and $225,000, or $0.01 per diluted share net of tax, in amortization of intangible assets associated with the Neural Audio business acquisition.
“Especially considering the difficult economic climate, we are pleased with our performance in the second quarter,” commented Jon Kirchner, president and CEO of DTS, Inc. “With the settlement of litigation matters with Zoran, we have taken another step forward in protecting consumers, our licensees, and our intellectual property, which we expect will contribute to the long-term growth of DTS’ business and the healthy development of the Blu-ray market.
“Also during the second quarter, we experienced encouraging activity in certain segments of the consumer electronics market, particularly those related to Blu-ray set-top products. With retail prices falling, content availability increasing and the pipeline of Blu-ray products growing, we are highly optimistic about our future.
SAN FRANCISCO, Jul 30, 2009 (BUSINESS WIRE) -- Dolby Laboratories, Inc. (NYSE
LB) today announced the Company's financial results for the third quarter of fiscal 2009. For the third quarter, Dolby reported total revenue of $171.2 million, compared to $154.3 million
for the third quarter of fiscal 2008, an increase of 11 percent
. Third quarter fiscal 2009 revenue included $21.6 million from three licensees for prior-period shipments
. Third quarter net income was $51.1 million