Dolby Laboratories, Inc. (Dolby Labs) (nyse: DLB) is a British USA-based company specializing in audio noise reduction and audio encoding/compression.

History

Dolby Labs was founded by Ray Dolby in Britain in 1965. He moved the company to the United States (San Francisco, California) in 1976. The first product he made was Type A Dolby Noise Reduction, a simple compander. One of the features that set Dolby's compander apart was that it treated only the quiet sounds that would be masked by tape noise. Dolby marketed the product to record companies.

Dolby was persuaded by Henry Kloss of KLH to manufacture a consumer version of his noise reduction. Dolby worked more on companding systems and introduced Type B in 1968.

Dolby did not manufacture consumer products outright; it licensed the technologies to consumer electronics manufacturers.

Dolby also sought to improve film sound. As the corporation's history explains:

Upon investigation, Dolby found that many of the limitations in optical sound stemmed directly from its significantly high background noise. To filter this noise, the high-frequency response of theatre playback systems was deliberately curtailed… To make matters worse, to increase dialogue intelligibility over such systems, sound mixers were recording soundtracks with so much high-frequency pre-emphasis that high distortion resulted.

The first film with Dolby sound was A Clockwork Orange (1971), which used Dolby noise reduction on all pre-mixes and masters, but a conventional optical sound track on release prints. Callan (1974) was the first film with a Dolby-encoded optical soundtrack. In 1975 Dolby released Dolby Stereo, which included a noise reduction system in addition to more audio channels (Dolby Stereo could actually contain additional center and surround channels matrixed from the left and right). The first film with a Dolby-encoded stereo optical soundtrack was Lisztomania (1975), although this only used an LCR (Left-Center-Right) encoding technique. The first true LCRS (Left-Center-Right-Surround) soundtrack was encoded on the movie A Star Is Born in 1976. In less than ten years, 6,000 cinemas worldwide were equipped to use Dolby Stereo sound. Dolby reworked the system slightly for home use and introduced Dolby Surround, which only extracted a surround channel, and the more impressive Dolby Pro Logic, which was the domestic equivalent of the theatrical Dolby Stereo.

Dolby developed a digital surround sound compression scheme for the cinema. Dolby Stereo Digital (now simply called Dolby Digital) was first featured on the 1992 film Batman Returns. Introduced to the home theater market as Dolby AC-3 with the 1995 laserdisc release of Clear and Present Danger, the format did not become widespread in the consumer market, partly because of extra hardware that was necessary to make use of it, until it was adopted as part of the DVD specification. Dolby Digital is now found in the HDTV (ATSC) standard of the USA, DVD players, and many satellite-TV and cable-TV receivers. Dolby too developed a digital surround sound compression scheme for TV series The Simpsons.