Common Usage
In common usage, a "stereo" is a two-channel sound reproduction system, and a "stereo recording" is a two-channel recording. This is cause for much confusion, since five (or more)-channel home theater systems are not popularly described as "stereo".
Most two-channel recordings are stereo recordings only in this weaker sense. Pop music, in particular, is usually recorded using close miking techniques, which artificially separate signals into several tracks. The individual tracks (of which there may be hundreds) are then "mixed down" into a two-channel recording. By using "left-right" panning controls, the audio engineers determine where each track will be placed in the stereo "image". The end product using this process often bears little or no resemblance to the actual physical and spatial relationship of the musicians at the time of the original performance; indeed, it is not uncommon for different tracks of the same song to be recorded at different times (and even in different studios) and then mixed into a final two-channel recording for commercial release.
Classical music recordings are a notable exception. They are more likely to be recorded without having tracks dubbed in later as in pop recordings, so that the actual physical and spatial relationship of the musicians at the time of the original performance is preserved on the recording.
Read more about this topic: Stereophonic Sound
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