The Philips HTD3520G Home Theatre System has built-in Dolby Digital decoder eliminates the need for an external decoder by processing all channels of audio information to provide a surround sound experience and an astoundingly natural sense of ambience and dynamic realism. This allows you experience superb quality surround sound audio with realistic spatial cues. You can play virtually any disc and any media devices you want, whether they be DVDs, VCDs, CDs or USB devices. Experience the unbeatable convenience of great playability, and the luxury of sharing media files on your TV or home theater system. With DivX support, you can enjoy DivX encoded videos in the comfort of your living room. The DivX media format is an MPEG4-based video compression technology that enables you to save large files like movies, trailers and music videos on media like CD-R/RW, and DVD recordable discs.