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This paper briefly outlines an overview of security issues in high quality audio streaming environments along with practical solutions for securing high quality audio during transmission and storage. We describe multi-tier protection for widely accepted. MPEG 1 and 2 audio encoding formats, although it can easily be applied to any other Perceptual Audio Coding (PAC) standards. The approach consists of using adaptive bitstream encryption and watermarking to provide high-level security features for audio streams, independent of underlying network connections and their conditions. Security features are integrated with a packet loss protection encoder, which operates on the frame-level of an MPEG audio stream, designed to compensate against loss of streaming quality and unreliable network conditions.