Dolby Laboratories licenses audio and video processing technology to consumer electronics manufacturers and sells hardware to movie theaters. Founded in 1965, Dolby's technology sits at every stage of the content chain — creation, distribution, and playback — forming a self-reinforcing ecosystem where more Dolby content drives demand for Dolby-enabled devices, and more Dolby-enabled devices incentivizes more Dolby content. Dolby licenses its technology to approximately 1,000 device manufacturers globally, typically structured as a per-unit royalty charged each time a manufacturer ships a TV, smartphone, PC, soundbar, or car incorporating Dolby technology. Licensing accounts for roughly 93% of revenue. Dolby's core branded technologies are Dolby Atmos, an object-based spatial audio format, and Dolby Vision, an HDR video format — together these represent the growth engine of the business. The remainder of licensing revenue comes from standard essential patents in broadly adopted codecs like AAC, AVC, and HEVC, licensed primarily through third-party patent pools. Products and services (~7% of revenue) includes cinema hardware and Dolby OptiView, a low-latency video streaming SaaS platform targeting live sports and iGaming. Dolby's margins benefit from ~90% gross margins and a largely fixed cost base, meaning revenue growth flows strongly to operating income. Key growth drivers include expanding Atmos and Vision into automotive and mobile, and two newer consumption-based revenue programs — a video distribution patent pool targeting streaming services and Dolby OptiView — which management targets could together reach roughly 10% of revenue within three years.