A Bitstream refers to binary bits of information (1's and 0's) transferred from one device to another.
However, in Home Theater applications, Bitstream refers to a digitally-encoded Dolby Digital or DTS-related compressed audio signal from a source component (such as a DVD, Blu-ray, or HD-DVD player, HD-Cable, or HD-Satellite Box) to a Preamp/Processor (either standalone or built into a Home Theater Receiver) for decoding and distribution to the amplifier stage for final sound reproduction, in analog form, by the loudspeakers. The Bitstream can be sent via Digital Optical, Digital Coaxial, or HDMI interface.
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