AC3 Audio is commonly used in digital TV and for DVD, where it may be called "Dolby Digital."

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MEncoder AC3 has no sound when run with VLC

Encoding video with MEncoder (MEncoder SVN R34540 (Ubuntu)) with AC3 codec from lavc, results in no sound on VLC 2.03. The encoded video sounds OK on Totem or Mplayer but there is no sound on VLC. ...