This makes for an interesting read but hasn't MLP already proposed their own lossless format for HD-DVD, it seems DTS want in on this market and i think this could be the best thing since sliced bread. http://www.twice.com/article/CA4112...date=04/19/2004 Agoura Hills, Calif. Digital Theater Systems (DTS) has proposed a lossless-compression technology to the movie industry for use in movie theaters and to the DVD Forum for inclusion in the HD DVD format still under development. Soundtracks encoded with the technology, DTS's first lossless codec, would be "bit-for-bit identical with the original master," DTS said. The as-yet unnamed codec features no specific limit on the number of discrete channels and sampling rates of 44.1kHz, 48kHz, and 96kHz at 16 bits to 24 bits .The compression ratio "is always varying," DTS added. "We anticipate seeing our codec in the consumer market in a couple years," a spokesperson said. Besides appearing in home HD DVD players, the technology could also appear in home music servers to store and distribute songs throughout a house, DTS said. "It's too early to comment" on whether the technology could be used to store DVD-Audio and SACD music, the company said. To promote the technology to the movie industry, DTS plans second-quarter demonstrations to film distributors and exhibitors. The DTS lossless technology is compatible with all analog-film formats and digital cinema sources, the company said. This should explain how it can be lossless and compressed at the same time http://mp3.radified.com/lossless.htm The term "lossless" implies no loss. But no loss of what? > Audio fidelity. Lossy codecs [such as MP3 and Musepack] generate smaller files by discarding selected bits contained in the original songs [bits it thinks you won't notice when they're gone], Lossless codecs, on the other hand, keep *everything* .. all the audio information [bits] contained in the original song(s). Lossless codecs merely shrink the size of the original file/song by >compressing< it [usually by half]. In other words, songs compressed with lossless codecs represent exact digital clones of the originals [with regard to audio fidelity/quality]. Audiophiles should be drooling about now. Basically it wouldn't matter if Dolby MLP or DTS produce the codec it'll all sound the same Anyone care to chip in with their feeling's about this development and if it's relevant to the UK as we don't have HD TV here at the moment so it's possible the market for HD DVD will be small and we might have to rely on importing players and software when it arrives.