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Dolby 5.1 is a multi-channel audio format. Basically meaning, it's surround sound. There is a Left, Centre, Right, Left Surround, Right Surround and LFE (Sub) Speaker.

Dolby 2.0 is simply 2 speakers, Left and Right. Similar to the Stereo sound you get from your TV.

The Dolby bit means it has been compressed and encoded using Dolby technolgies, normally AC3.

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Q: What is the difference between 5.1 dolby digital and 2.0 dolby digital?
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