Photo: Anne Helmond via flickr
Dolby announced this afternoon that Microsoft will use its Dolby Digital Plus technology in Windows 8, sending the stock up more than 12% after hours.Most Windows PCs shipped since Windows Vista came out 2007 have included technology for playing back Dolby-encoded content on DVDs and other media. (Prior to that, hardware makers had to licence and include the necessary technology on new PCs themselves.)
Dolby gets a licence fee from Microsoft for each PC sold with its technology. As a result, Windows licensing made up more than 10% of Dolby’s revenue from 2008 through 2010.
But last year, Dolby warned investors that Microsoft might NOT include it in Windows 8, sending its stock down about 18% on the news.
But apparently the companies came to terms.