Having been programmed with the actual dimensions of the replay space, and number of available playback sources, the Iosono decoder outputs audio signals tailored for the installation-specific loudspeaker channels. The result has been described as an ‘acoustic hologram.’

‘While it is possible to create a fairly realistic sense of acoustic space with conventional surround-sound technology,’ concedes Brian Slack, Iosono’s SVP of Studio Technologies, ‘there is one major drawback – the mix requires that the listener sits in the so-called ‘sweet spot.’ Outside of that, any sound will be perceived to originate only from a very general direction.’

Read the rest of this fine Mel Lambert/ProAudio Asia article at:
The art of mixing motion pictures – Pro Audio Central 

In fact, this is part 2 of  article: 
As 3D conquers popular cinema, how are audio playback formats being developed to match?