Dolby Laboratories – Entering Broadcast with Precision

Dolby Laboratories

Pricing StrategyB2B MarketingBroadcast TechnologyProduct Launch
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Market Control

80% Market Control

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Cable Head Ends

11,000 Cable Head Ends

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Year

2002

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Overview

Dolby Laboratories faced the challenge of introducing its new LM100 Broadcast Loudness Meter to a market it didn't yet fully serve. The product was technically strong but entering a space where purchasing behavior, distribution access, and value perception were uncertain.

Key Challenges

  • Segment prioritization across production houses, post-production facilities, networks, local TV stations, and cable providers
  • Varying price sensitivity across different market segments
  • Limited distribution reach into critical cable MSO and local broadcast station segments
  • Uncertainty in pricing strategy between cost-plus and value-based approaches
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Solution

Dolby focused on a well-known user pain point: inconsistent volume across broadcasts. The LM100 implemented the open-standard Equivalent Loudness Method in a real-time, easy-to-use format, capable of detecting silence, alerting operators to errors, and providing actionable loudness measurements.

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Results

Dolby identified cable MSOs as the highest-potential segment, with six providers controlling 80% of the 11,000 cable head ends in the U.S. This presented an opportunity for high-impact, scalable deployment while addressing operational challenges and customer retention issues.

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Key Learnings

  • The LM100 represented a platform play, not just a niche tool
  • Cable MSOs, while cost-conscious, stood to gain the most from the solution
  • Dolby's brand provided an edge, but success depended on execution
  • The launch was a test of Dolby's ability to scale into a broader, less premium market

Conclusion

The LM100 gave Dolby a rare opportunity to lead a new category, but success required more than just technical excellence. By pricing smart, targeting cable MSOs first, and investing in distribution reach, Dolby could build a real broadcast presence while reinforcing its reputation as the gold standard in sound.

Solving technical problems is only half the battle. Dolby's success with the LM100 depended on turning a clear user pain into a scalable market opportunity.