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I downloaded the codec from that page and did some tests by encoding a
WAV file at various ATRAC bitrates.  I find the LP2 bitrate to be quite
acceptable, and the LP4 bitrate to be unacceptable for music with a wide
stereo field, but perfectly acceptable for mono or narrow stereo
sources.
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MDLP, especially the LP4 mode, also can come in handy for background music
or PA-related applications where quality isn't critical. In these
environments, stereo separation isn't critical because speakers are often
located where the business owner sees fit so as to cover the area with
music. Also, the music often competes with lots of other background noise,
especially in a restaurant or bar.

Sony also promoted the concept of MDLP being suitable for long-distance
driving in countries like USA and Australia, where there is a large "federal
area" and you can cross the country east-to-west without passing through
border controls. They envisage that the music would be competing with the
engine and road noise while the driver is concentrating on covering the
long-distance journey and there is a need to only carry one disc full of
music to cover the journey one-way; or two discs to cover the journey "there
and back" without the music repeating. This would work well if the car MD
player was set in shuffle-play mode.

As for equipment used for this kind of application, the equipment should
support "segue-shuffle" where the next track appears to start the moment the
current track ends if the MD player is playing a disc where "dead-air" at
the start and end of songs is edited out. This is the behaviour that the
Sony portables and car units exhibit when placed in shuffle-play mode.

With regards,

Simon

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