DTS (Digital Theater Systems) is a standard home theater audio format developed in 1993 to compete with Dolby Digital. If used in your home theater system, it provides surround sound for 5.1, 6.1, and 7.1 setups. Compared to Dolby Digital, DTS uses higher bitrate, thereby offering superior sound quality.
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AAX (Atom Asset Exchange) is an audio file format for storing sound-based products from Audible Incorporated. Typically, AAX files are DRM protected, although they can be transcoded to other common formats such as MP3 using a licensed program like Wondershare UniConverter.