Pulse-code modulation (PCM) is a digital representation of an analog signal where the magnitude of the signal is sampled regularly at uniform intervals, then quantized to a series of symbols in a numeric (usually binary) code. PCM has been used in digital telephone systems and 1980s-era electronic musical keyboards. It is also the standard form for digital audio in computers and the compact disc "red book" format. It is also standard in digital video, for example, using ITU-R BT.601. However, straight PCM is not typically used for video in standard definition consumer applications such as DVD or DVR because the bit rate required is far too high.
In the diagram, a sine wave (red curve) is sampled and quantized for PCM. The sine wave is sampled at regular intervals, shown as ticks on the x-axis. For each sample, one of the available values (ticks on the y-axis) is chosen by some algorithm (in this case, the floor function is used). This produces a fully discrete representation of the input signal (shaded area) that can be easily encoded as digital data for storage or manipulation. For the sine wave example at right, we can verify that the quantized values at the sampling moments are 7, 9, 11, 12, 13, 14, 14, 15, 15, 15, 14, etc. Encoding these values as binary numbers would result in the following set of nibbles: 0111, 1001, 1011, 1100, 1101, 1110, 1110, 1111, 1111, 1111, 1110, etc. These digital values could then be further processed or analyzed by a purpose-specific digital signal processor or general purpose CPU. Several Pulse Code Modulation streams could also be multiplexed into a larger aggregate data stream, generally for transmission of multiple streams over a single physical link. This technique is called time-division multiplexing, or TDM, and is widely used, notably in the modern public telephone system.
