Does Watermarking affect the sound?
In some cases yes, in some cases no. Since it’s a digital code that sounds like noise that’s being added to the signal, it will be minutely audible under some circumstances. In order to minimize the affect on the audio, the WG-4 and the RIAA have taken great pains before selecting a watermarking method. This is one of the reasons why the DVD-A spec took so long to complete. While many watermarks were evaluated, some of the more “golden eared” members of the industry were still able to hear the one chosen. Of course, this is because they know what to listen for.