Abbreviation for Digital Theater Systems. DTS is a company that has pioneered a multi-channel digital audio format known as DTS. The DTS format (and the company) is one of Dolby’s major competitors in the theater and home theater markets. Audio produced for home DTS playback is in a 5.1 format just as Dolby Digital or AC-3 is, though DTS is also used on an increasing number of audio only compact discs. Currently DTS stores and decodes at 20 bit resolution and when encoded in what they call “master quality” mode, which is used on laser discs, DVD’s and compact discs, uses 1/4 the data compression of AC-3. DTS claims (and many users agree) their system provides higher audio quality. There are many subtle differences between the two incompatible technologies, and it is likely that both will coexist for the foreseeable future.