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This article is from the DVD Formats FAQ, by jtfrog@usa.net (Jim Taylor) with numerous contributions by others.

1.32 What's the deal with DTS and DVD?

Digital Theater Systems Digital Surround is an audio encoding format
similar to Dolby Digital. It requires a decoder, either in the player or in
an external receiver. See 3.6.2 for technical details. Some people claim
that because of its lower compression level DTS sounds better than Dolby
Digital. Others claim there is no meaningfully perceptible difference.
Because of the many variances in production, mixing, decoding, and
reference levels, it's almost impossible to accurately compare the two
formats (DTS usually produces a higher volume level, causing it to sound
better).

DTS originally did all encoding in house, but as of October 1999 DTS
encoders are available for purchase. DTS titles are generally considered to
be specialty items intended for audio enthusiasts. It's expected that most
DTS will also be available in a Dolby Digital-only version.

DTS is an optional format on DVD. Contrary to what some people claim, the
DVD specification has included an ID code for DTS since 1996 (before the
spec was even finalized). Because DTS was slow in releasing encoders and
test discs, players made before mid 1998 (and many since) ignore DTS
tracks. A few demo discs were created in 1997 by embedding DTS data into a
PCM track (the same technique used with CDs and laserdiscs), and these are
the only DTS DVD discs that work on all players. New DTS-compatible players
arrived in mid 1998, but theatrical DTS discs using the proper DTS audio
stream ID did not appear until January 7, 1999 (they were originally
scheduled to arrive in time for Christmas 1997). Mulan, a direct-to-video
animation (not the Disney movie) with DTS soundtrack did appear in November
1998. DTS-compatible players carry an official "DTS Digital Out" logo. A
few manufacturers may provide upgrades to make existing players compatible
with DTS discs.

Dolby Digital or PCM audio are required on 525/60 (NTSC) discs, and since
both PCM and DTS together don't usually leave enough room for quality video
encoding of a full-length movie, essentially every disc with a DTS
soundtrack also carries a Dolby Digital soundtrack. This means that all DTS
discs will work in all DVD players, but a DTS-compatible player and a DTS
decoder are required to play the DTS soundtrack. DTS audio CDs work on all
DVD players, since the DTS data is encapsulated into standard PCM tracks
that are passed untouched to the digital audio output.

 

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