[5] In the same year, he invented the Dolby Noise Reduction system, a form of audio signal processing for reducing the background hissing sound on cassette tape recordings.

[7] After this, other companies began purchasing Dolby’s A301 technology, which was the professional noise reduction system used in recording, motion picture, broadcasting stations and communications networks.

Dolby was persuaded by Henry Kloss of KLH to manufacture a consumer version of his noise reduction.

As the corporation's history explains:[citation needed] The first film with Dolby sound was A Clockwork Orange (1971).

The company was approached by Stanley Kubrick, who wanted to use Dolby’s noise reduction system to facilitate the film’s extensive mixing.

[11] The film went on to use Dolby noise reduction on all pre-mixes and masters, but a conventional optical soundtrack on release prints.

[13] In 2005, Dolby's stereo 4-channel optical theater surround was inducted into the TECnology Hall of Fame, an honor given to "products and innovations that have had an enduring impact on the development of audio technology.

Dolby Digital is now found in the HDTV (ATSC) standard of the United States, DVD players, and many satellite-TV and cable-TV receivers.

[citation needed] On February 17, 2005, the company became public, offering its shares on the New York Stock Exchange, under the symbol DLB.

features such as media enhancements and transcoding, spatial audio, high-quality video communication and low-latency streaming.

Later, a story emerged that MIT had entered into an agreement with Dolby whereupon the university would be awarded a large sum of money if the MPEG-2 system was rejected.