The four-minute long video was created by youth-focused agency Espionage and mixes live action and animation.
Espionage recruited Beardyman, who makes all of the sounds in the video with his own vocals, to become 'Dolbyman'.
The video can be watched on or downloaded from Dolby's site and the virtual surround sound turned on and off to experience the difference.
It advises people: "For the best beats, look for the Dolby button on your mobile".