Analyst Cuts Dolby FY '23 Revenue Guidance on 'Clouded' Demand View
Dolby’s near-term demand picture “is clouded,” Rosenblatt Securities analyst Steven Frankel wrote investors Sunday, saying he’s reducing the FY ’23 outlook for Dolby's license growth to 3% year on year from his previous 6% estimate. Further penetration of Dolby Atmos…
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and Vision should put the company on a double-digit growth path, but “given the countless number of negative headlines around PCs, handsets and general economic pressure,” Rosenblatt cut FY ’23 revenue to $1.33 billion from $1.37 billion. Dolby continues to build out its ecosystem, while Apple updated the AppleTV+ app for Samsung TVs to support HDR10+, meaning several shows on the subscription VOD service can be viewed in HDR10+, in addition to Dolby Vision. “We still don’t believe HDR10+ has enough support from content producers to be a viable alternative to Dolby Vision,” he said. Over the past couple of months, two high-profile streaming shows, Amazon's Lord of the Rings: The Rings of Power and House of the Dragon from HBO Max, are offered in Atmos and Vision, Frankel said, saying, “Amazon's support of Vision & Atmos is important in that it was an early backer of HDR10+ and for the last six years hadn't created original content in Vision.” Amazon also added Vision support to The Wheel of Time, he said. Elsewhere, Fox broadcast MLB playoff and World Series games in Dolby Vision, and Duran Duran released a 75-minute documentary concert film to theaters in Vision and Atmos. The analyst also noted a session at Samsung’s Developer conference on enabling Atmos in gaming. Dolby reports Q4 FY '22 earnings Nov. 17.