What does the compatibility in MPEG-2 multichannel mean?
The core of the MPEG-2 bitstream is an MPEG-1 bitstream. This enables fully compatible decoding with an MPEG-1 decoder. In addition, the need to transfer two separate bitstreams, called simulcast (one for two-channel stereo and another one for the multichannel audio programme) is avoided, at some cost in coding efficiency for the multichannel audio signal, compared to AAC which is a Non Backward Compatible (NBC) coding algorithm.