In the mid to late 1990s many higher-end AV receivers included the demodulator circuit specifically for the LaserDisc players RF modulated Dolby Digital AC-3 signal. By the late 1990s with LaserDisc players and disc sales declining due to <answer>DVD's growing popularity</answer> the AV receiver manufacturers removed the demodulator circuit. Although DVD players were capable of playing Dolby Digital tracks, the signal out of DVD player were not in a modulated form and not compatible with the inputs designed for LaserDisc AC-3. Outboard demodulators were available for a period that convert the AC-3 signal to standard Dolby Digital signal that was compatible with the standard Dolby Digital/PCM inputs on capable AV receivers. Another type marketed by Onkyo and others converted the RF AC-3 signal to 6-channel analog audio.
What competition caused LaserDisc sales to decline?
DVD's growing popularity