Streaming surround sound could be just around the corner as the Fraunhofer Institute, known for their MP3 patent, has introduced a surround sound mp3 module. The module compresses music and gives 5.1 channel sound at Internet-friendly bitrates.

At the Midem conference in Cannes France, Fraunhofer is demonstrating a new WinAmp surround mp3 plug-in and a Flash Internet radio program. The plug-in is currently available for download at mp3surround.com.

According to the Fraunhofer Institute, surround sound mp3 files will be around the same size as current 2-channel stereo MP3s. Songs compressed with the new technology will be backwards compatible with regular mp3 players.