An audio system comprises an audio source terminal 11 and a audio playback terminal 13, connected to each another by a wireless data link 14. The source terminal 11 comprises a source computer 15, and a cellular modem 17. The playback terminal 13 comprises a playback computer 19 having an internal processor 23 and an audio processor 24. Connected to the processor 23 is a cellular modem 21, an audio transducer 25, and a user control 27. Data relating to audio components, representing different services, is stored at the source terminal 11 where it is spatially processed and transmitted to the playback terminal. At the same time, each individual audio component is transmitted at a lower bit-rate than the spatially processed data, to the audio source terminal 11, whereafter it is spatially processed. Although the low bit-rate transmission causes a loss of audio quality, the positional data remains unaffected. Accordingly, when played, the combination of a high quality signal with low three-dimensional audio positional accuracy, and a set of low quality signals with high three-dimensional audio positional accuracy, results in restoration of the human perception of three-dimensional position to the degraded three-dimensional audio signal.