Perceptual coding is one of the enabling technologies for a whole generation of new services and products including Internet audio. It saves an order of magnitude in bandwidth or storage cost for high quality audio and enables to push audio through lower bandwidth if lower quality is acceptable. The availability of more bandwidth to the con-sumer raises the question of the necessity of perceptual coding in future system. The paper will present an overview over the basic techniques used for perceptual coding and discuss the current state of the art. Better audio quality and new features for audio compression will prolong the life time of this technology
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