In the ever-changing world of digital music, many audio enthusiasts remember the fierce competition among audio codecs in the late 1990s and early 2000s. Before MP3 became the de facto standard and streaming services revolutionized music consumption, companies were racing to develop formats that could offer the perfect balance of high quality and small file sizes. Among the most ambitious efforts came from Sony, whose proprietary codecs—ATRAC and Advanced Lossless—attempted to define what high-fidelity digital music should sound like.
This article provides a look back at Sony’s adventurous journey through codec development, their motivations behind creating proprietary audio formats, and the legacy that ATRAC and Advanced Lossless have left behind.
What Is ATRAC?
ATRAC, or Adaptive Transform Acoustic Coding, was first introduced by Sony in 1992. It was designed specifically for their new MiniDisc format, which aimed to merge the portability of cassettes with the durability and rewritability of digital optical media.
ATRAC was Sony’s answer to the storage limitations of the MiniDisc. The original version, ATRAC 1.0, was capable of compressing CD-quality audio to about 292 kbps while maintaining reasonably high audio fidelity—good enough for casual listeners and suitable for portable devices. The fundamental reason behind developing ATRAC was control: Sony wanted to own the entire music playback ecosystem, from hardware (Walkman, MiniDisc players) to the software (ATRAC codec).
Over the years, ATRAC underwent multiple revisions:</
- ATRAC3: Introduced to compete more directly with MP3, offering compression rates as low as 66 kbps to about 132 kbps, making it possible to store more songs on a device without drastically sacrificing sound quality.
- ATRAC3plus: An enhanced version designed for high-resolution audio; it offered improved sound quality at lower bitrates and was used widely on Sony’s NetMD and Hi-MD players.
- ATRAC Advanced Lossless: An ambitious hybrid codec combining both lossy and lossless compression—more on this later.
Why Sony Created Its Own Codec
In the late ’90s and early 2000s, Sony was not just competing in the music player market—they were a music publisher, a hardware manufacturer, and a software developer. Owning a proprietary codec like ATRAC allowed them to control how music was encoded, stored, and played. This was crucial during the era when digital rights management (DRM) and copyright protection were hot-button issues.
With the rise of MP3—an open format that enabled widespread music piracy—Sony saw proprietary formats like ATRAC as a way to enforce DRM and protect artists’ rights through their SonicStage platform. However, this approach also led to compatibility headaches for users, a factor that ultimately contributed to ATRAC’s decline.
The MiniDisc Era
ATRAC’s first and primary battleground was the MiniDisc. Released in 1992, MiniDiscs were Sony’s digital answer to CDs, aimed at redefining portable music. They could hold up to 74 minutes of music in the initial ATRAC format and were initially marketed to audiophiles and tech enthusiasts.
Later developments with NetMD and Hi-MD devices allowed users to transfer music digitally from a computer, though the process was often plagued by software limitations and DRM policies. Nevertheless, ATRAC evolved and improved. In Japan, MiniDiscs saw considerable success, but in the West, CD-Rs and the eventual rise of MP3 players like the iPod overshadowed Sony’s efforts.
The Introduction of ATRAC Advanced Lossless
As audiophiles sought higher fidelity and lossless formats like FLAC began to emerge, Sony introduced ATRAC Advanced Lossless in 2006. This codec attempted to bridge the gap between lossy and lossless formats by offering a unique hybrid approach.
ATRAC Advanced Lossless used a technique whereby:
- The file was split into two parts—a lossy ATRAC3 stream and a correction stream.
- On compatible Sony devices, the two parts combined to provide full lossless audio reproduction.
- On devices that didn’t support the lossless component, the file could still be played with the ATRAC3 core stream at standard quality.
This flexibility was innovative. The idea was to maintain backward compatibility for lower-end devices while futureproofing music libraries for audiophiles with high-end listening gear. Files encoded using ATRAC Advanced Lossless varied in size, depending on the complexity of the source audio, but generally hovered around 600–900 kbps—comparable to other lossless formats like Apple Lossless and FLAC.
Format Wars and Decline
Despite its technical strengths, ATRAC faced an uphill battle. By the mid-2000s, MP3 had already captured consumers’ attention, and newer, more open formats like AAC and FLAC found favor among both casual listeners and audiophiles.
Sony’s strict DRM policies and the relatively clunky SonicStage software didn’t help matters. Users found it frustrating to manage music libraries across platforms. While companies like Apple were streamlining user experience with the iTunes + iPod combination, Sony clung to a more controlled environment, which inadvertently alienated users.
In 2007, Sony formally discontinued its support for ATRAC and the SonicStage music software outside of Japan. This marked an unofficial end to the codec’s life in consumer electronics. However, in Japan, support lingered for a few more years before it too eventually faded.
Legacy and Lessons
Though ATRAC and its derivatives ultimately lost the battle for codec supremacy, they left behind some valuable contributions to the evolution of digital audio.
Key takeaways include:
- Codec innovation: ATRAC pioneered early ideas around hybrid encoding, which would inspire future codecs and formats.
- Data efficiency: ATRAC was early proof that high-quality audio could be made portable even with limited storage.
- Vertical integration pitfalls: Sony’s desire to own the full ecosystem led to user restrictions that worked against them in the long run.
It’s worth noting that while ATRAC is no longer in active use, many of its concepts continue to influence modern codecs and digital audio technologies. Sony too has moved on—now embracing more open standards and high-resolution audio formats, such as DSD and FLAC, in its Walkman devices and high-fidelity product lines.
The Future of Audio at Sony
Today, Sony remains a major player in the world of audio, having pivoted from proprietary codecs to supporting a wide array of widely-adopted lossless and high-res formats. Through this, the company demonstrates that while proprietary formats may offer innovation, openness and compatibility are often more valuable to consumers in the long term.
For audio historians, engineers, and tech enthusiasts, the story of ATRAC stands as a fascinating example of innovation, ambition, and the risks of going it alone in an increasingly interconnected world.