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In the 1990s, Dolby founded Beatnik, a Silicon Valley software company whose technology was used to play internet audio and later ringtones, including the Nokia tune. He was also the music director for TED Conferences. On the faculty at the Peabody Institute at Johns Hopkins University since 2014, Dolby leads Peabody's Music for New Media program, which enrolled its first students in the fall of 2018.

Following the acquisition of the company Igor's Software Laboratories in 1996, which was also involved with creating audio for WebTV, Headspace developed a new downloadable file format designed specifically for Internet usage called Rich Music Format with the RMF file extension.[35] It had the advantage of small file size like MIDI but allowed recorded sampled sounds to be included at a higher bitrate for better overall reproduction. RMF music files could be played in a browser using the free Beatnik Player plug-in, and were also encrypted to prevent unauthorised duplication, while info such as the composer and copyright information could also be embedded within the files. In 1999, Headspace, Inc. was renamed Beatnik, Inc., and later shifted its focus towards software synthesizers for mobile phones, which it licensed to mobile phone manufacturers including Nokia. As truetone ringtones eventually overtook polyphonic ringtones in popularity, Beatnik went defunct in 2011.[36]

Dolby stepped down from his position as CEO in 2002, feeling that the business was no longer interesting to him, although he remained on the board. This subsequently led to him founding Retro Ringtones LLC, which produced the RetroFolio ringtone asset management software suite for companies involved in the mobile phone ringtone business, as well as offering ringtones that could be purchased by businesses. These ringtones largely consisted of sound clips such as animal sounds, celebrity quotes and sci-fi sound effects, as well as polyphonic covers of popular theme songs. At the second annual Mobile Music Awards, Miami, Florida, in 2004 RetroFolio won "Best of Show" and "Best New Technology" awards.[4] The company ended business in 2005 and has since been suspended by Secretary of State of California. 5376163bf9

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