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Chapter 500 - Chapter 491: Dolby Laboratories

Billboard magazine is America's most prestigious music publication, and its Billboard TOP 100 chart is widely regarded as the leading compass for global pop music trends.

For the past few months, two songs have been dominating the charts: Nickelback's "How You Remind Me" and Linkin Park's "In the End." 

The Canadian rock band Nickelback, in particular, has been on fire with their album Silver Side Up. It's almost like they're pointing the way forward for rock music. In recent years, no rock song has managed to hold the top spot on the Billboard chart for so long!

But then, in late April, the calm in the music world was shattered by a single track—Something Just Like This, a duet by renowned director Dunn Walker and famous actress Natalie Portman. The moment the single dropped, it took North America by storm!

In its first week, the record sold a staggering 18 million copies, smashing the record previously set by Michael Jackson! Of course, this had something to do with Dunn giving up most of the profits and selling it at a low price.

Dunn wasn't counting on album sales to make money. Even with 18 million copies sold in the first week, he still pocketed $4 million— which he jokingly called Natalie's "pocket money."

Profit wasn't his goal. What mattered to him was promotion and reach, because this was the Marvel Song! He was building hype for the upcoming May release of Spider-Man 2.

The release window for Spider-Man 2 wasn't as cushy as it had been for Spider-Man 1. Back then, its main competition was Gone in Sixty Seconds, a 90s-style action flick. But two weeks after Spider-Man 2 hits theaters, it'll face a formidable rival—Star Wars: Episode II – Attack of the Clones! 

That film's leading lady? None other than this year's Oscar-winning actress, Natalie Portman—giving them even more promotional firepower.

If Spider-Man 2 wants to repeat the $1 billion box office miracle, it needs to get creative with its marketing and keep fans hooked. And no matter what, the Marvel Song was a hit!

Within a week of release, it sold 18 million copies. Radio stations across the country were playing it nonstop, and while the earnings from airplay hadn't been tallied yet, early estimates pegged it at no less than $1 million.

The latest issue of Billboard came out, and the Marvel Song swooped in out of nowhere, knocking the red-hot Nickelback off the top spot. As expected, it claimed #1 on the TOP 100 chart!

The momentum was unreal—reminiscent of the unstoppable force Madonna or Michael Jackson brought when they dropped new singles at their peak.

In the song, superheroes like Ghost Rider, Thor, Daredevil, Iron Man, and Ant-Man became hot topics among fans. Marvel comic buffs, in particular, felt a surge of pride, eagerly sharing their knowledge with friends and basking in the glow of being in the know.

For Dunn, though, music and writing were just side gigs. His real passion was movies.

Dunn Films had recently acquired Dolby Laboratories through a "stock + cash" deal, and the transaction was now complete. Dunn made a special trip to Silicon Valley to visit Dolby Labs.

Founder Dr. Dolby and the current CEO, young Dolby, welcomed him warmly. Dr. Dolby was getting up there in age, and the question of Dolby Laboratories' legacy had been a big concern. With Dunn Films taking over, they'd secured both cash and stock, solving a major headache.

"Is that EA over there?" Dunn asked, shaking hands enthusiastically with the Dolby father-and-son duo as they showed him around the high-tech audio company.

Young Dolby nodded. "Yep, we do business with EA. Most of their game effects use our digital multichannel sound systems. Compared to other gaming companies, EA's games stand out for their audio. FIFA Soccer might not control as well as Pro Evolution Soccer, but the sound is a huge plus."

Dunn grinned. "Is that so? Well, our company's about to dip its toes into the gaming world soon, and we'll definitely need your help when the time comes."

Young Dolby chuckled. "Of course! When it comes to sound, Dolby Labs has the world's top noise-reduction tech and stereo control. It makes games feel more real, more immersive."

But then Dr. Dolby chimed in. "Our core business is still home theater—film and TV. We can't lose sight of that."

Dunn smiled. "Dr. Dolby, you're as wise as ever!"

Under the Dolbys' guidance, Dunn toured the company's main operations. Dolby's headquarters housed over 100 labs and employed more than 1,400 people. Each lab had its own focus—acoustics, visuals, even biophysics. It was Dunn's first time there, and he couldn't shake a subtle sense of awe.

As he walked through, Dunn kept a warm smile, shaking hands with employees and offering praise, though he held back on sharing any big opinions.

Today, Dolby Laboratories boasts tech like the "Dolby Pro Logic Surround System," "Dolby AC-3 Decoding System," "Dolby Noise Reduction," "Dolby Stereo," "Dolby E," and "HX Pro." With over 800 patents, they're undeniably a titan in the world of audio technology.

On the profit side, Dolby Labs has three main revenue streams: selling products for theaters and broadcast TV (like Dolby amplifiers, sound cards, and speakers); technical support and consulting; and licensing fees. Last year, they brought in $85 million, with the breakdown being 13%, 4%, and 83% respectively.

Honestly? It's not a huge number.

Dr. Dolby noticed Dunn hadn't said much and picked up on it. "Mr. Walker, are you…?"

Dunn waved it off with a laugh. "Dr. Dolby, you're too polite. Just call me Dunn—or 'kid,' if you like."

Dr. Dolby nodded. "So, what do you think?"

Dunn paused, then spoke slowly. "Since the Cold War ended, federal regulations have loosened up. The Clinton administration pushed hard for corporate consolidation, and with globalization kicking in, we've seen a wave of massive global companies emerge fast. The media industry's no different—it's about linking up the whole supply chain and breaking down trade barriers."

The Dolbys ushered him into an office, listening intently. Sure, this boss was young, but his track record was legendary. Age didn't define his ability.

"Dunn Films is a movie-driven company, and Dolby Labs' tech is a perfect fit for the film industry," Dunn said, his gaze sharpening. "But… Dr. Dolby, haven't you noticed? Dolby's business is all about technical support. At its core, it's a service industry."

Dr. Dolby's face stiffened.

Young Dolby, though, looked thoughtful. "IMAX got acquired too, right? Isn't it the same? Tech exists to serve."

Dunn smiled faintly. "Sure, I'm not denying that. But we need to know who we're serving. Take the Dolby Noise Reduction System—it was designed to clean up tape hiss during recording. But now? Tapes are obsolete, and that tech's lost its edge."

Dr. Dolby shook his head. "Not true. We used to have Type C noise reduction, but now it's Type S. It works for mastering CDs, VCDs, and DVDs."

Dunn locked eyes with him. "And how long will DVDs last? Don't forget, we're in the digital age now. The internet's the future!"

Young Dolby frowned. "But discs are still the mainstream format."

Dunn nodded. "Of course, I'm not saying we should ditch those projects or meddle with Dolby's past direction. I'm just saying… Dolby Labs is part of Dunn Films now. If we can align our businesses better, this acquisition can really pay off."

The Dolbys exchanged puzzled looks. Strategic decisions like that don't click instantly.

Dunn pressed on. "Take IMAX, for example. They've got IMAX cameras, giant screens, and a solid tech department. But what really syncs with Dunn Films' resources? IMAX theaters! You've heard, right? With DMR remastering tech, we jumped on it. The first IMAX blockbuster, Pirate League, hits theaters in July!"

Dr. Dolby, a scientist at heart, caught on. "So this is what you mean by using movies to drive the whole industry forward?"

"Exactly! No matter how great the tech is, without a product to lead the way, it just sits on a shelf. Movies are the most influential product out there—especially Dunn Films' movies! I'm not exaggerating when I say our films can spark new trends in movie tech!" Dunn said, brimming with confidence.

Dr. Dolby's eyes lit up. "You're saying… you want to push new film technologies hard?"

Dunn grinned. "Why else would I pour big money into acquiring IMAX and Dolby Labs? Truth is, I'm also funding James Cameron's team to develop 3D movie tech."

Dr. Dolby said, "We've got Dolby amplifiers—top choice for home theater. Paired with our Pro Logic Surround System, it takes the viewing experience to another level."

Dunn shook his head. "Not enough. Nowhere near enough! The future of movies isn't at home—it's in theaters! Right now, there are 75 IMAX screens in the U.S., mostly showing documentaries with lousy attendance. But once Pirate League drops, you know what'll happen?"

Young Dolby, with his business management background, had overseen Dolby's shift from research lab to commercial company. He jumped in. "If DMR tech holds up, IMAX theaters will be packed! The market drives capital. After that, more theaters will partner with IMAX, converting to IMAX screens to handle the potential boom in IMAX films."

Dunn clapped his hands. "Exactly! That's it! IMAX's future revenue will come from theater shares and tech support—all guided by Dunn Films' movies. If Dolby Labs wants to boost its earnings, it needs to build on its tech support and work hand-in-hand with Dunn Films!"

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