A multichannel, digitalsplit-bandperceptual coding scheme developed by Dolby Labs. It produces a 5.1 channel format, using lossy compression. Designed to be the matrixing format for DVD and surround-sound with HDTV broadcasts. Versatile, in that parameters such as bit-rate and number of channels, it can be tailored to particular applications, unique in that AC-3s data bits are distributed dynamically among the filter bands as needed by the particular frequency spectrum or dynamic nature of the program. Data rates vary from 32 kbps for a single mono channel to as high as 640 kbps for 5.1 format.

See Dolby Digital.