@Manoje,
Thanks.
As a side note, I remember reading somewhere about the arguments among the decision makers / influencers in audio industry during the era when mono transitioned into stereo. There were many path breaking suggestions and prototypes, some using three speakers etc..
I guess it remained at stereo due to many practical and cost related problems. Now stereo has been refined to such a degree in multi-faceted areas that replicating all that to multi-channel will probably remain a dream.
Some valid points. Although, some clarifications are needed.
When the industry was trying to move from mono to next sound level, the idea was to add body to the sound. Hence the word "Stereo" which is borrowed from greek meaning "solid" or 3 dimensionality. So, the first iteration was 3 speakers in front but very soon they were using surround speakers to add the third dimension. Because of the limitation of technology, they started encoding 4 tracks into 2 channels.
More or less, the encoding used was simple -
Left channel - Left track.
Right channel -Right track
Center channel - equal in both left + right tracks
Surround channel - equal in both, but out of phase.
One may look at it as efficient, some may think its limitation, but it did work beautifully and created 3 dimension.
Soon it made it to home audio, where the medium was Reel2Reel and Vinyl. Some even had 4 dedicated tracks. Now we all know that the surround speakers, if used rightly, adds the 3 dimensionality to audio, whether its music or movies. It's the underlying fact.
You are right on the bang about cost and underlying factor for staying with 2 speaker setup. Industry settled on 2 speakers, that does not mean its the better choice. We all know this because ipods and mp3 is convenience and accepted a lot but it does not mean its better than CD. Same thing can be said about soundbars or Home theater in box - lot of them are sold, even more than AVR's and HT speakers. But we don't say those are better.
We are still able to get quite a bit of 3 dimensional audio at home using 2 speakers because of room reflections from all the 4 walls tend to give us those illusions. Can it be made better by using more speakers? Sure, why not? Like spreading two speakers in front made the sound stage wider, if we add surround speakers, now the sound stage can also be moved from front to back. It works for movies so no reason why it can't work for audio. As for gimmicky, its true for movies as well. In the movie, if the surround mix is aggressive or not done right, then it can be distracting as well. Same thing applies to music. It's up to us whether to take advantage and extend our sound stage front to back as well. I use it that way. Some tracks can be disturbing though. In that case, I just switch to 2 channel.
As for the current topic and Capt question, there are surround cues in the recording, one can
extract (not create) them either using decoders like Dolby PLII or simply by adding two surround speaker out of phase with LR. Industry started calling 2 channel audio as stereo but that does not mean they are not putting more info in the recordings.
To put things in perspective - when Dolby introduced their surround format in theaters, they called it Dolby Stereo. When they introduced for home, they called it surround because people had already associated stereo means 2 speakers at home.
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