Dolby® Digital

This is a digital surround sound technology used in movie theaters and upscale home theater systems that enhances audio. It allows compression of up to 7.1 channels of audio into a 2-channel signal.
Dolby® AC-3 is a method for a compression method for encoding up to 5.1 channels of audio into a digital audio signal using a minimum of bandwidth.
Dolby® Digital Plus is an enhanced AC-3 format for encoding up to 7.1 channels of audio at a higher quality into a video stream.
Dolby® TrueHD is a 100% lossless (“uncompressed”) audio stream, supporting multiple channels over HDMI.
The choices of encoding methods are made when the content is mastered at the studio, so home theater systems need to be able to support those choices, or audio will default to a lower-resolution audio format that the system can support.

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