The exploitation of left-right correlation in a subband code for stereophonic audio signals is investigated. A transform of left and right signals into decorrelated intensity and error signals is presented. Although this can be seen as the optimal exploitation of redundancy, it yields only marginal gain in bit rate. If the reduced phase-sensitivity of the human observer can be exploited by encoding only the intensity signal, a substantial gain can be obtained. Preliminary results of a stereo codec are promising: at 192 kb/s good coding results have been obtained.
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