Three TV brands have confirmed support for Dolby Vision 2 – but there’s a big one missing

Dolby has confirmed that Hisense, TCL and Philips will support the new Dolby Vision 2 HDR format in 2026, with TCL adding support to its SQD Mini LED X11L and C-series via post‑launch software updates and Philips listing OLED811, OLED911 and OLED951 as compatible. Major manufacturers Sony and Panasonic remain unconfirmed or delayed in announcements, Samsung continues to back HDR10+ and will launch HDR10+ Advanced, while LG has stated it has no plans to support Dolby Vision 2 in 2026. The divergence increases format competition and may influence buyer decisions and OEM positioning in premium TV segments, but is unlikely to have material near-term market-moving effects on broad equities.

Analysis

Market structure: Dolby (DLB) and mid-tier OEMs that can push firmware updates (TCL 1070.HK, Hisense 000921.SZ, Philips/TP Vision) are tactical winners — they gain differentiation without immediate hardware redesign, potentially boosting ASPs by 3–7% on higher-end SKUs over 6–12 months. Losers are premium incumbents that decline DV2 (LG 066570.KS) or back a rival standard (Samsung 005930.KS) as consumers may trade off format support when choosing TVs, pressuring mix and promotional intensity. Cross-asset: expect modest upside in DLB equity, selective gains for mini‑LED/component suppliers, slight negative sentiment for KRW if Korean OEM margins compress; bond/commodity impacts are minimal but visible in supplier credit spreads if adoption forces capex changes.

Risk assessment: tail risks include a fast, coordinated push by Samsung/HDR10+ Advanced and major streamers to reject DV2 (low-probability, high-impact downside for DLB and partner OEMs) and potential antitrust/licensing disputes that could delay rollouts. Time horizons: immediate (days) — little price action; short-term (weeks–months) — product announcements (Mar–May) and SELLOUTs will reveal consumer uptake; long-term (12–24 months) — streaming platform support and licensing revenue growth determine earnings. Hidden dependencies: streaming/OS support (Netflix/Prime/Apple TV) and chip‑vendor readiness (SoC firmware) are gating factors; absence of those will cap upside.

Trade implications: direct plays — overweight DLB (licensing/software upside) and selective OEMs that announce DV2 (TCL 1070.HK, Hisense 000921.SZ) while underweight LG (066570.KS) into product-cycle risk; target 2–3% portfolio position in DLB with a 12‑month horizon and +25–35% target. Pair trade — long DLB / short LG (066570.KS) to express format arbitrage; expect convergence if LG signals DV2 support or DLB licensing disappoints. Options — buy a 6–9 month DLB call spread (delta ~0.35 long) to cap premium, or buy puts on LG (3–6 month) to hedge product-cycle downside.

Key Decisions for Investors

• Establish a 2–3% long position in Dolby Laboratories (DLB) now and add up to +1% on confirmation of 2–3 major streaming platforms endorsing Dolby Vision 2 within 90 days; target +25–35% upside in 12 months, stop-loss -12%.
• Take a selective 1.5–2% long position in TCL Technology (1070.HK) to capture mid‑range firmware upgrades and mini‑LED ASP lift, add on positive sell‑through data in Q2 2026, stop-loss -15%.
• Open a 1–2% short position in LG Electronics (066570.KS) into the 2026 TV launch window (Mar–May) anticipating share loss if DV2 momentum continues; cover if LG announces DV2 support or if DLB licensing disclosures disappoint.
• Execute options: buy a 6–9 month DLB call spread sized to replicate a 1.5% equity exposure (long lower strike, short higher strike) to cap premium, and buy 3–6 month puts on LG (066570.KS) as a hedge against near‑term product‑cycle downside.
• Monitor three binary catalysts within 60–120 days (Sony/Panasonic TV announcements Mar–May, major streamer support decisions within 90 days, and HDR10+ Advanced commercial rollout); increase or unwind positions only after at least one of these catalysts confirms adoption trajectory.