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The introduction of AC3 in the early 1990s coincided with the launch of the DVD (Digital Versatile Disc) format. DVD players, which quickly gained popularity, were capable of reading AC3-encoded audio from DVDs. This marked the beginning of a new era in home theater audio.
AC3 is a perceptual audio coding algorithm developed by Dolby Laboratories. It was the first coding system designed specifically for multichannel digital audio (5.1 surround sound) and became the standard audio format for DVD video and the North American digital television broadcast standard (ATSC). It achieves high compression ratios (approx. 12:1) while maintaining high subjective fidelity by utilizing a psychoacoustic model to discard data deemed inaudible to the human ear. codec audio ac3