Reference

What is AC-3 / Dolby Digital?

AC-3 is the codec/bitstream format commonly branded as Dolby Digital. It became a core surround format for DVD, digital television and home-theater delivery.

AC-3 is: a lossy multichannel audio codec. Dolby Atmos is not another name for AC-3: Atmos metadata/object information may be delivered through other Dolby formats such as Dolby Digital Plus or TrueHD.

Common Dolby Digital specifications

PropertyDolby Digital / AC-3
Channels1.0 to 5.1 discrete
CompressionLossy
Typical DVD 5.1 bitrate384 or 448 kbps
Blu-ray 5.1 bitrateUp to 640 kbps
MetadataDialogue level, channel mode, LFE, dynamic-range and downmix control metadata

Where AC-3 appears

AC-3 may appear as a raw .ac3 stream or inside containers/disc structures such as MPEG transport streams, VOB/DVD, MP4 in supported ecosystems, MKV and others.

AC-3 vs E-AC-3

E-AC-3 (Dolby Digital Plus) is a newer, more efficient extension/family member with higher channel and bitrate capability. A file labelled “Dolby Digital Plus” should not be described simply as ordinary AC-3.

Common confusion

5.1 is a channel layout, not a codec. AC-3 is one codec that can carry 5.1. DTS, AAC, FLAC and other codecs can also carry multichannel audio.