Dolby Laboratories (DLB) Takes On 3D

Dolby Laboratories (NYSE: DLB) is set to profit from the coming boom in 3D movies. After the success of James Cameron's "Avatar" followed by that of Tim Burton's "Alice in Wonderland", there's no longer any doubt that 3D movies are here to stay.

Although 3D movies have been around since the 1950's, they were usually regarded as something of a joke.

Now that one 3D movie alone has brought in more than $2.5 billion in ticket sales, no one is taking the genre lightly anymore.

Dolby Laboratories, known to most consumers for its sound systems is also a player in 3D technology.

To use Dolby's technology, movie theaters do not need special screens or 3D-only projectors. All that is needed is is a digital projector.

Of course, Dolby Laboratories would be happy if theater owners upgraded to a Dolby Digital projector for even better performance.