A new efficient coding scheme of high-quality audio signals with digital data compression is proposed. It is based on a signal-adaptive filter bank, the modified psychoacoustic model (MPEG-4 ISO/IEC-FCD14496-3, Subpart 1), another algorithm of bit allocation. Masking in the frequency and time domain, binaural unmasking effect, and particular features of virtual sound source localization by stereo signal binaural perception are considered.
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