DTS AutoStage™ Expands into More Vehicle Models Following Video Launch, Developing New Functionality

Rhea-AI Summary

DTS, Inc. (XPER) Expands DTS AutoStage and HD Radio into More OEM Vehicle Models, Including BMW, Ford, and Harley Davidson, and Demonstrates Gaming Prototype at CES 2024

Insights

Market Research Analyst

The expansion of DTS AutoStage to include gaming capabilities represents a strategic move by Xperi Inc. to capitalize on the growing trend of in-car entertainment diversification. The integration of gaming into DTS AutoStage is a response to consumer demand for more comprehensive entertainment options within vehicles, which is now seen as a 'third space' for digital consumption. The adoption by major OEMs like BMW, Ford and Harley Davidson signifies the industry's recognition of the value in offering a varied in-car entertainment experience.

By targeting the 25 to 34 demographic, which shows a strong preference for built-in vehicle entertainment systems, Xperi is positioning itself to capture a significant market segment. The move is likely to create competitive differentiation and could potentially lead to increased market share in the connected car technology space. The inclusion of over-the-air updates ensures that the platform remains current and appealing to consumers, which may translate to higher customer satisfaction and brand loyalty.

The announcement at CES 2024, alongside the showcasing of these technologies, is likely to generate industry buzz and could positively influence investor perception of Xperi's growth potential and innovation capabilities. This is particularly relevant given the increasing consumer time spent on gaming and the expectation for this to rise, indicating a growing market for in-vehicle gaming experiences.

Financial Analyst

The announcement of DTS AutoStage's expansion, including the addition of gaming capabilities, could have a positive impact on Xperi Inc.'s financial performance. By diversifying their in-car entertainment offerings, Xperi is not only broadening its revenue streams but also enhancing its appeal to automotive manufacturers seeking to offer advanced features to their customers. The incorporation of popular digital games tailored to in-car use represents an innovative approach to monetization within the automotive technology sector.

Furthermore, the successful implementation of HD Radio in over 100 million vehicles and its expansion into Harley Davidson motorbikes, indicates a strong market penetration and could be indicative of a robust revenue stream. The strategic partnerships with leading automotive brands like BMW and Ford suggest confidence in Xperi's technology and the potential for long-term contracts that provide stable revenue growth.

Investors should monitor the consumer adoption rates of these new features and the subsequent financial impact on Xperi Inc. Increased adoption rates could lead to upward revisions in revenue forecasts and potentially improve the company's valuation. However, it is important to consider the costs associated with research, development and marketing of these technologies, as they may impact short-term profitability.

Automotive Industry Expert

The integration of advanced entertainment technologies such as DTS AutoStage and HD Radio into vehicles by Xperi Inc. reflects a significant trend in the automotive industry towards creating a more engaging and personalized in-cabin experience. The move to include gaming capabilities addresses the evolving consumer expectations, particularly among younger demographics who spend considerable time gaming each week. By doing so, Xperi is not only enhancing the value proposition of the vehicles but also contributing to the concept of the car as an extension of one's digital lifestyle.

The collaboration with established automotive brands could encourage other manufacturers to follow suit, potentially setting a new standard for in-car entertainment. This trend of continuous innovation is crucial for maintaining consumer interest and market relevance in an industry that is increasingly focused on user experience. The emphasis on safety, through the design of games that can be played safely in the car, is also indicative of the industry's commitment to responsible innovation.

As vehicles become more connected, the ability to deliver over-the-air updates is a key competitive advantage, allowing manufacturers to keep the in-car experience fresh and aligned with consumer trends. This could contribute to brand loyalty and customer retention, as well as potentially command premium pricing for vehicles equipped with such advanced technologies.

• DTS AutoStage expanding from audio and video to include gaming capabilities
• Ford and Harley Davidson expand adoption of DTS technologies

SAN JOSE, Calif.--(BUSINESS WIRE)-- DTS, Inc., a subsidiary of Xperi Inc. (NYSE: XPER), today announced at CES^® 2024 the expansion of its connected car entertainment technologies – DTS AutoStage and HD Radio – into more OEM vehicle models, including BMW, Ford and Harley Davidson. Additionally, DTS will be demonstrating a gaming prototype, the next addition to the DTS AutoStage platform. DTS AutoStage is a global entertainment platform for the connected car that seamlessly combines linear broadcast with IP-delivered content in a unified, user-centric experience. From audio to video and soon gaming, DTS AutoStage makes it easy and safe for consumers to discover and engage with the full spectrum of their entertainment preferences, all in one vehicle screen for today’s and tomorrow’s car owners, drivers and passengers.

“The increasing adoption of our connected car technologies is validation that, as consumers increasingly view the vehicle as a ‘third space’, they need more from their in-vehicle entertainment experience than a jumble of apps on their dash. They want experiences that are integrated, personalized and on-trend,” said Jeff Jury, Xperi’s senior vice president and general manager. “Our content first approach, that can support audio, video and games, illustrates our platform’s ability to rapidly advance to help automakers enhance and solidify their relationship with their customers by meeting their evolving entertainment needs and preferences.”

In a recent consumer survey by Xperi and DTS, it was discovered that 71% of those 25 to 34 want a built-in vehicle entertainment experience that is more than a mirror of their smartphone. Entertainment in the vehicle has transformed from simple audio capabilities, to front and rear seat video, with the next frontier including gaming. According to IDC, Gen Z are today’s most avid gamers at 14.9 hours a week on average, while consumers overall spend an average of 9.4 hours a week on gaming. While that is a relatively small slice of the 60 hours a week that consumers spend engaged with digital entertainment, the numbers are expected to rise in the next year for Younger Millennials, Older Millennials and Gen X.

DTS AutoStage plans to incorporate today’s most popular digital games including audio games, casual games and console/core games engineered with discovery and context that is personalized to users’ preferences, and designed to ensure games are played safely in the car. The addition of gaming to the platform will round out the platform by delivering a complete content-first media experience.

Because over-the-air updates are an integral part of the DTS AutoStage platform, immediate innovations and additions are easily and rapidly facilitated so consumers have the most up-to-date and relevant user interface with access to the most current and expansive content available.

For example, BMW, which recently rolled out DTS AutoStage Video Service Powered by TiVo™ in its BMW 5-Series vehicles throughout the United States, Great Britain, South Korea, France, Italy, Germany, Spain and soon also in Japan, is now being rolled out over-the-air to other models. Customers in the compact class have also had access to DTS AutoStage Video Service Powered by TiVo in vehicles with BMW Operating System 9 in conjunction with BMW Digital Premium since the end of 2023, with further vehicles, such as the BMW X2, and all models of the new MINI family following in 2024. DTS AutoStage Video Service Powered by TiVo is the ultimate in-car video entertainment experience. It brings personalized, content-first experience to the connected car, delivering free premium content across live TV, news, sports, movies, and more, on the vehicle screen.

The traction of Xperi connected car technologies is further evidenced by the ongoing expansion of HD Radio, the North American standard for digital radio, which recently marked milestone implementation in more than 100 million vehicles and, the company announced, for the first time in Harley Davidson motorbikes. In addition, Ford Motor Company is incorporating DTS AutoStage into certain North American vehicles, starting with the 2024 Lincoln Nautilus.

Throughout CES 2024, DTS and Xperi will be showcasing how its connected car technologies are revolutionizing the entertainment industry on the show floor at the LVCC West Hall Booth 6240 and at Park MGM. If interested, request a demo at media@xperi.com.

For more information on DTS AutoStage, visit https://dts.com/autostage/.

Research: IDC, Consumer Engagement with Digital Entertainment: Video and Social Media Take Center Stage , doc # US51213423, September 2023

Consumer Survey: “From In-Vehicle Entertainment to Integrated In-Cabin Experience” Report

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements are based on information available to Xperi as of the date hereof, as well as Xperi’s current expectations that involve risks and uncertainties. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause Xperi’s actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to the availability, features, benefits, functionality, attributes, and timing of release of Xperi’s products and related services. These risks, as well as other risks associated with the business, are more fully discussed in Xperi’s filings with the U.S. Securities and Exchange Commission (“SEC”), including Xperi’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K.

About DTS, Inc.

Since 1993, DTS has been dedicated to making the world sound better. Through its pioneering audio solutions for mobile devices, home theater systems, cinema and beyond, DTS provides incredibly high-quality, immersive and engaging audio experiences to listeners everywhere. Now, DTS is also powering imaging and sensing technologies as well. For more information, please visit www.dts.com.

About Xperi Inc.

Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, and IMAX Enhanced, an IMAX and DTS partnership, have been integrated into billions of consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences. Xperi has created a unified ecosystem that reaches highly engaged consumers driving increased value for partners, customers and consumers.

©2024 Xperi Inc. All Rights Reserved. Xperi®, TiVo®, DTS®, HD Radio™, Play-Fi^®, Perceive® and their respective logos are trademark(s) or registered trademark(s) of Xperi Inc. or its subsidiaries in the United States and other countries. All other trademarks and content are the property of their respective owners.

XPER-P

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108697686/en/

Allyse Sanchez, Xperi

Allyse.sanchez@xperi.com

Source: Xperi Inc

FAQ

What technologies is DTS, Inc. expanding into more OEM vehicle models?

DTS, Inc. is expanding DTS AutoStage and HD Radio into more OEM vehicle models, including BMW, Ford, and Harley Davidson.

What is DTS AutoStage?

DTS AutoStage is a global entertainment platform for the connected car that combines linear broadcast with IP-delivered content for a unified user-centric experience.

What is the gaming prototype demonstrated by DTS, Inc. at CES 2024?

DTS, Inc. demonstrated a gaming prototype, the next addition to the DTS AutoStage platform, at CES 2024.

What are the findings of the recent consumer survey by Xperi and DTS?

The recent consumer survey by Xperi and DTS discovered that 71% of those aged 25 to 34 want a built-in vehicle entertainment experience that is more than a mirror of their smartphone.

What is the current trend in consumer gaming habits?

According to IDC, Gen Z are today’s most avid gamers at 14.9 hours a week on average, while consumers overall spend an average of 9.4 hours a week on gaming.

How does DTS AutoStage plan to incorporate gaming?

DTS AutoStage plans to incorporate today’s most popular digital games including audio games, casual games, and console/core games engineered with discovery and context that is personalized to users’ preferences.

What is the ultimate goal of adding gaming to the DTS AutoStage platform?

The addition of gaming to the platform will round out the platform by delivering a complete content-first media experience.

What is the significance of over-the-air updates for the DTS AutoStage platform?

Over-the-air updates are an integral part of the DTS AutoStage platform, facilitating immediate innovations and additions to ensure consumers have the most up-to-date and relevant user interface with access to the most current and expansive content available.

How is BMW rolling out DTS AutoStage Video Service Powered by TiVo?

BMW is rolling out DTS AutoStage Video Service Powered by TiVo over-the-air to other models after its initial rollout in the BMW 5-Series vehicles.

What is HD Radio?

HD Radio is the North American standard for digital radio, which has recently marked milestone implementation in more than 100 million vehicles and is now being incorporated for the first time in Harley Davidson motorbikes.