Stereo output, but data is encoded in a way that is picked up by a Pro Logic or Pro Logic 2 decoder and split into a 5.1 speaker setup.
The Pro Logic speaker mode is a surround matrix (up to 5 channels) encoded into 2-channel stereo (Dolby Pro Logic–style). Channel count is set to 2. Only use this speaker mode if you must support matrix decoding.
Without a decoder, it just plays as normal stereo.
Pros:
Cons: