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This definitely isn't the first time its been done. 5.1 is cool, no doubt about it, but it just isn't practical.
The most popular formats for music are probably ipod, and car stereo, which both output in stereo. To get the full effect you would have to sit at a home theater system. I know this doesn't apply to the majority of people here, but how many people do you know that just sit and listen to music these days? It doesn't have the convenience or practicality of listening to an ipod while jogging or your car stereo while u drive to work.
You can't just simply mix something in 5.1 and hope that it translates the same way in stereo due to imaging and phase issues. You would have to do 2 separate mixes and also release the music on 2 different CDs/DVDs.
I don't think too many labels are willing to put up the budget for this kind of project.
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