Various methods of bit reduction for digital audio systems are discussed in this paper. The conditions for high quality digital audio systems are 1) any degradation in quality should not be permitted, and 2) the reliability against code errors should be extremely strong. Because of reason 1, a method of variable length word is recommended. According to reason 2, Huffman-code, Shannon-code, or Fano-code, are very difficult to adopt, and a new code names "Segment Code" is proposed, which can provide the strong reliability by the sacrifice of efficiency. Modulation methods are also discussed with regard to increase packing density.
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