LG’s latest OLED TVs include an alternative to Dolby Atmos made by its biggest rival

LG will add support for Eclipsa Audio (IAMF) alongside Dolby Atmos on its 2026 TV lineup (C6, G6, W6) and roll a software update to select 2025 models (G5, C5, C5S, QNED9M). Eclipsa Audio is an open-source 3D audio format developed by Samsung with Google as an alternative to Dolby Atmos, currently not supported by major streaming services and aimed at YouTube content creators; playback will work via built-in speakers and HDMI eARC devices. Near-term commercial impact is limited by lack of content distribution partnerships, but the move signals increasing interoperability and competitive feature adoption between major TV makers.

Analysis

An open, freely implementable immersive-audio standard materially shifts bargaining power away from legacy codec licensors toward platform and device owners who can bundle the feature at zero marginal licensing cost. That change favors firms that control distribution and creator tools — they capture incremental engagement upside from creator-driven content without paying per-stream royalties — and it compresses a once-captive revenue stream for incumbent IP owners and specialist licensing partners.

Second-order supply-chain impacts are subtle but real: SoCs and TV firmware stacks that already support flexible audio pipelines get accelerated install bases, reducing incremental BOM and software-development cost to OEMs and soundbar vendors. Conversely, specialty audio DSP vendors and premium Dolby-dependent soundbar SKUs face margin pressure and may be forced into hardware differentiation (microphones, beamforming, subwoofer performance) rather than format exclusivity.

Risk timing is long tail: measurable commercial outcomes require months-to-years — content producer tooling, major streaming service support, and home audio hardware refresh cycles. Catalysts to watch are (1) major streaming platforms signaling native support, (2) large-scale firmware rollouts across installed bases, and (3) any licensing counter-moves from incumbent IP holders. A fast reversal could come if streaming platforms refuse the standard or if competing open formats fragment the market, slowing adoption and restoring pricing power to licensors.

Key Decisions for Investors

• Long GOOGL (or GOOG) — overweight for 6–18 months: the company benefits from greater creator engagement and ad inventory optionality if it controls a de facto free immersive-audio layer. Use a 6–12 month call spread to cap premium (e.g., buy 12-month calls and sell higher strike calls) to target ~2–3x upside vs limited time-premium risk.
• Relative-value pair: long GOOGL / short NFLX over 3–12 months — buy GOOGL exposure via calls or shares and hedge by shorting NFLX (or buying NFLX put spread). Rationale: distribution/ad-led platforms capture disproportionate upside from increased user-generated immersive content while subscription streamers face feature commoditization and higher content-cost leverage. Keep net delta small and size short-NFLX to 20–40% of long-GOOGL notional due to idiosyncratic content risks.
• If you prefer options-only, initiate a 9–12 month trade: buy GOOGL 12-month call spread and buy NFLX 9–12 month put spread. Target asymmetric payoff where GOOGL upside (engagement + ad rev) delivers 2–4x vs limited premium outlay; cap downside with defined-width spreads.
• Risk management: set stop-loss at ~15–20% adverse move on individual positions and monitor two binary catalysts — major streamer support announcement (positive for GOOGL, negative for NFLX) and any incumbent-licensor litigation/partnership (could flip the thesis within 60–180 days).