For decades, Dolby Labs has been the king of audio and video technology. Dolby Atmos and Dolby Vision are names synonymous with superior sound and picture quality, creating a benchmark for home entertainment systems, streaming services, and tech enthusiasts. When people shop for new TVs, soundbars, or subscribe to streaming services, they know the Dolby brand promises top-tier quality.
However, as we move into 2025, Dolby’s future appears uncertain. Free alternatives to Dolby’s proprietary technologies are gaining traction fast. Will these new, royalty-free formats dethrone Dolby’s long-held dominance in the audio/video space? Let’s dive deeper into why Dolby’s business model might face its biggest challenge yet.
The Power of Dolby’s Legacy and the Threat of Free Alternatives
Dolby Labs has been an undisputed leader in audio and video technologies, bringing high-quality sound and picture to the masses. From its early innovations with Dolby Surround Sound to more recent advances with Dolby Atmos and Dolby Vision, the company has set the gold standard. But with the rise of royalty-free alternatives, Dolby’s position is now under serious threat.
How Dolby makes money is simple: by licensing its technologies to manufacturers and service providers. Whether you’re watching a movie with Dolby Atmos sound or enjoying a 4K film in Dolby Vision, Dolby earns a royalty each time a compatible product is sold. While this business model has been incredibly lucrative, the tech world is evolving, and so are the market dynamics.
With the majority of the consumer electronics industry operating on tight margins, manufacturers are increasingly looking for ways to cut costs—and royalty-free alternatives are an attractive option.
The Battle of HDR: Dolby Vision vs. HDR10+
In the video space, Dolby Vision has been the leader in dynamic HDR (high dynamic range) formats. It delivers a stunning picture with superior brightness, colour grading, and contrast, and it has been a key feature on 4K UltraHD Blu-ray discs and on popular streaming platforms like Netflix.
However, HDR10+, a free, open-source alternative developed by Samsung, is quickly catching up. Initially, its adoption was slow, but with Netflix’s announcement to support HDR10+ for all HDR titles by the end of 2025, it’s clear that the free alternative is gaining ground. This could mark the beginning of the end for Dolby Vision’s dominance, especially as Samsung—a major player in the TV industry—has never licensed Dolby Vision for its own products.
Atmos Under Siege: Eclipsa Audio and the Fight for Spatial Sound
While Dolby’s Atmos format has been incredibly successful, it is facing a significant challenge from an open-source competitor called Eclipsa Audio. Developed by Samsung, in collaboration with Google and the Alliance for Open Media, Eclipsa Audio is a free, open-source spatial audio format designed to rival Dolby’s Atmos.
With Eclipsa Audio, any company can create spatial audio without paying hefty licensing fees. Samsung is already including Eclipsa Audio support in its flagship soundbars, and Google and Apple are expected to join forces to support the format as well. The free nature of Eclipsa Audio poses a direct threat to Dolby Atmos, as it could become the new standard for spatial sound in both music and movies.
What Does the Future Hold for Dolby?
Despite these rising threats, Dolby’s future isn’t entirely bleak. Dolby Vision and Dolby Atmos still have a significant head start, and their widespread recognition continues to ensure strong demand from consumers. But the shift towards free alternatives means that Dolby’s future in these markets is far from certain.
Why will Dolby’s dominance continue for now?
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Brand recognition: The Dolby name is widely recognised and trusted by consumers, and it’s a mark of quality that many actively seek when buying new tech.
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Established relationships: Many major manufacturers and streaming services continue to rely on Dolby’s technologies, and this level of integration won’t disappear overnight.
But free alternatives like HDR10+ and Eclipsa Audio are quickly gaining traction. And if large tech players like Apple and Google back these technologies the way they have supported Dolby in the past, Dolby’s reign could be under serious threat.
How Dolby is Fighting Back: Innovation and Flexibility
Even in the face of competition, Dolby is not standing still. In fact, the company is continuing to innovate in an attempt to maintain its leadership position.
One such innovation is Dolby Atmos FlexConnect, a system that allows users to set up wireless speakers throughout a room without needing a soundbar. This allows for an immersive experience without the traditional hardware constraints, making it easier for consumers to enjoy spatial audio without complex setups. Dolby’s response to free alternatives is clear: adapt and evolve.
Is the Future Free?
As free alternatives continue to gain momentum, one thing is certain: the audio/video space is becoming more diverse. Competition is a good thing for consumers, as it drives innovation and choice. However, the dominance of Dolby technologies won’t disappear overnight.
The challenge for companies like Samsung, Google, and Apple will be building strong brand awareness around HDR10+ and Eclipsa Audio. Consumer adoption of new technologies takes time, and companies will need to back these alternatives with serious marketing muscle to match the established credibility that Dolby enjoys.
In the end, choice will reign. Competition will force Dolby to innovate even further while ensuring consumers have more options to choose from, whether it’s Dolby Vision, HDR10+, Dolby Atmos, or Eclipsa Audio.
Photo credit: PCMag
