Dolby Laboratories – Entering Broadcast with Precision
Dolby Laboratories
Market Control
80% Market Control
Cable Head Ends
11,000 Cable Head Ends
Year
2002
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
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.
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.
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.