An encoder for digital audio signals at a higher sample rate creates a stream for consumer distribution at a lower sampling rate, with compatibility for standard PCM players without a decoder. In conjunction with a suitable decoder, two enhanced playback options are supported, the first option allowing full lossless reconstruction of a noise-shaped higher sampling rate signal, the second option allowing lossy bandwidth extension even if an intervening transmission chain has truncated the least-significant-bits of the encoder's output signal.