Binaural audio has actually been around for decades (see the Binaural History article in our blog), but has never been a major music industry format for one main reason:
To preserve the 360 degree effect, you can’t heavily process the audio. That means that industry-standard “studio magic” (like heavy compression and EQ, auto-tune, artificial reverb and delay, etc) doesn’t really have a home in binaural recording (no hard feelings, Gaga). Multi-tracking, splicing and minor processing is certainly possible, but it’s usually unnecessary unless you’re looking for special effects.
The real strength of binaural recording is in capturing sound and music exactly the way we hear it live – which allows every listener the chance to experience the performance again and again, from the best seat in the house.