DTS Neo:6 is a surround sound processing format designed to enhance the listening experience in a home theater environment. When playing a CD, vinyl record or DVD with a soundtrack that only has two channels of information, DTS Neo:6 can expand the sound field to 6.1 channels.
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Unlike DTS Digital Surround and Dolby Digital, which must be encoded and present in the source material, DTS Neo:6 is a post-processing format. Therefore, it does not need to be encoded in any specific way so that it can be decoded to extract the correct channel assignments for the audio mix.
Instead, DTS Neo:6 uses a special chip built into most 5.1 or 7.1 channel home theater receivers to analyze all of the sonic signals in an unencoded two-channel soundtrack mix (usually from an analog source), and then distributes those sonic elements as accurately as possible into a 6-channel home theater speaker setup.
Typically, a DTS Neo:6 speaker setup consists of six channels (left front, center, right front, left surround, center rear, and right surround) and a subwoofer.