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The theatrical DTS processor acts as a transport mechanism, as it holds and reads the audio discs. Data reduction is accomplished via sub-band coding with linear prediction and adaptive quantization. Unlike the home version of DTS or any version of Dolby Digital, the APT-X100 system is fixed at a 4:1 compression ratio. The audio compression used in the theatrical DTS system (which is very different and completely unrelated to the home Coherent Acoustics-based DTS Digital Surround format) is the APT-X100 system. The multi-channel DTS audio is recorded in compressed form on standard CD-ROM media at a bitrate of 882 kbit/s.

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An LED reader scans the timecode data from the film and sends it to the DTS processor, using the time code to synchronize the projected image with the DTS soundtrack audio. In theatrical use, a proprietary 24-bit time code is optically imaged onto the film. On September 2, 2015, iBiquity announced that it was being purchased by DTS for US$172 million, uniting iBiquity's HD Radio digital radio broadcast technology with DTS' digital audio surround sound systems. Phorus, a subsidiary of DTS, Inc., is a Los Angeles-based technology group dedicated to wireless audio for connected devices.

In 2014, DTS acquired Manzanita Systems, a provider of MPEG software for digital television, VOD, and digital ad insertion. In 2012, DTS acquired the business of SRS Labs (Sound Retrieval System), a psychoacoustic 3D audio processing technology, including over 1,000 audio patents and trademarks. and became known as Datasat Digital Entertainment.ДЄ photo of a 35 mm film print featuring all four audio formats (or 'quad track')- from left to right: SDDS (blue area to the left of the sprocket holes), Dolby Digital (grey area between the sprocket holes labelled with the Dolby 'Double-D' logo in the middle), analog optical sound (the two white lines to the right of the sprocket holes), and the DTS time code (the dashed line to the far right.) SRS Labs In 2009 DTS Digital Cinema was purchased by Beaufort International Group Plc. In 2008, the cinema division was divested to form DTS Digital Cinema. Universal Pictures would exclusively support DTS until late 1997. In addition, Jurassic Park also became the first home video release to contain DTS sound when it was released on LaserDisc in January 1997, two years after the first Dolby Digital home video release ( Clear and Present Danger on Laserdisc), which debuted in January 1995.

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Spielberg debuted the format with his 1993 production of Jurassic Park, which came slightly less than a full year after the official theatrical debut of Dolby Digital ( Batman Returns). One of the DTS Inc.'s initial investors was film director Steven Spielberg, who felt that theatrical sound formats up until the company's founding were no longer state of the art, and as a result were no longer optimal for use on projects where quality sound reproduction was of the utmost importance. This method allows backward compatibility.ДTS's main competitors in multichannel theatrical audio are Dolby Digital and SDDS, although only Dolby Digital and DTS are used on DVDs and implemented in home theater hardware. A decoder which does understand the new variant decodes the core stream, and then modifies it according to the instructions contained in the extension stream. The core stream can be decoded by any DTS decoder, even if it does not understand the new variant.

These variants are generally based on DTS's core-and-extension philosophy, in which a core DTS data stream is augmented with an extension stream which includes the additional data necessary for the new variant in use.

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Other, newer DTS variants are also currently available, including versions that support up to seven primary audio channels plus one LFE channel (DTS-ES). The basic and most common version of the format is a 5.1-channel system, similar to a Dolby Digital setup, which encodes the audio as five primary (full-range) channels plus a special LFE ( low-frequency effects) channel for the subwoofer.Д®ncoders and decoders support numerous channel combinations, and stereo, four-channel, and four-channel+LFE soundtracks have been released commercially on DVD, CD, and Laserdisc. Work on the new audio format started in 1991, four years after Dolby Laboratories started work on its new codec, Dolby Digital. A photo of a theatrical DTS CD-ROM disc used for the original 1993 release of Jurassic Park