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Dolby, Netflix Tie Up to Deliver Better Streaming Experience

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Dolby Laboratories, Inc. (DLB - Free Report) recently announced that it has collaborated with U.S.-based streaming service provider, Netflix, Inc. (NFLX - Free Report) , to deliver combined Dolby Atmos and Dolby Vision streaming experience to consumers.

The streaming experience will be available on compatible LG televisions. Netflix has plans to introduce additional devices in a bid to boost consumer experience. Xbox owners can also enjoy these services by connecting their console to a Dolby Atmos-enabled home theater system, TV, headphones and soundbar.

Apart from this, Netflix’s critically acclaimed original movie, Okja, will be premiered using the Dolby Atmos and Dolby Vision streaming experience. According to a report by technology news and media network, the Verge, additional supported titles – including original movies, like Blame!, Death Note and Bright – will be released on the Dolby Atmos and Dolby Vision-enabled catalogue.

Dolby has maintained its long-standing partnerships with industry frontrunners like Apple Inc. (AAPL - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Netflix to offer best-in-class services and fend off competition. As a matter of fact, Dolby Audio has been selected by 40 streaming services, including Netflix, Microsoft, Amazon and ITV. The company is always on the lookout for bringing new audiovisual experiences to the market for grabbing a greater market share.

Despite the company’s leadership position in audio solutions, shares have been witnessing a dismal run on the bourse, of late. Dolby's shares have yielded 10.6% year to date, way below the Zacks categorized Audio/Video Home Production industry’s average gain of 32.9%. Lower recoveries in the broadcast business and unexpected push out of revenues are proving to be major deterrents, denting the company’s growth.

Moreover, dismal sales of PCs, DVD, Blu-ray and home theater equipments are expected to dwarf the top-line growth of the company for the rest of fiscal 2017. Lower licensing fees, attributable to cost-reduction initiatives of major clients, also pose as threats for this Zacks Rank #4 (Sell) company.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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