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there aren't many (any?) audio receivers that can interpret AAC 5.1. That's been the problem all along.

There's no requirement for a receiver to know anything about AAC 5.1. Indeed, I only know of one that does, made by Sony.

What happens instead is that the AAC 5.1 is decoded at the output of whatever plays it, and is output in whatever format is most appropriate for the receiver. At present, that's probably AC3 over S/PDIF. In the future, it'll be the raw 8ch PCM that all the cool kids will be using, over HDMI.
 
There's no requirement for a receiver to know anything about AAC 5.1. Indeed, I only know of one that does, made by Sony.

What happens instead is that the AAC 5.1 is decoded at the output of whatever plays it, and is output in whatever format is most appropriate for the receiver. At present, that's probably AC3 over S/PDIF. In the future, it'll be the raw 8ch PCM that all the cool kids will be using, over HDMI.

Exactly. I always assumed this was the designers intended solution for 5.1 sound from onset of MPEG4. This allows for variable bitrate on the audio, realtime downmixing to stereo from the same stream and improved highend sound quality by being able to output in any format you support (AC3, DTS, AAC...)

Some people might think that this is to much for the Apple TV to handle realtime, but think about. They already do just this for the stereo output. It's already real time converted to AC3 for the optical out. Heck, my XBMC can do this with no problem.

A 1/2 mbit of bandwith in your files for one device is a very bad idea. do think that the Apple TV will be your streamer forever? If you support this, you better, because nobody else will read the stream.
 
Now that HB has 5.1 in a Mp4 do you think Visual Hub will update soon with the same? I really hope so, I'm holding off on encoding some stuff because I don't like the limitations of the .mov file...
 
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