Sony's Lossless Format
Sony has developed a new lossless format called Advanced Lossless Technology or ATRAC. Support for ATRAC has appeared on the MZ-DH, MZ-RH and MZ-DN series of MD players as well as the MD Player/Recorder MDS-JE480. This new format has two types of data Atrac3 and Atrac3plus and uses something called "scalable compression". With "scalable compression" the device determines whether to use compression or not. This enables a user who wants lossless audio and has a portable device to have just one file type instead of having to create a lossless version and a lossy version.
Sony's ATRAC Listening Tests