A technique currently only employed in the heads (and hearts) of ogg vorbis developers. This technique will allow a user to create, for example a 64 kBit/s vorbis stream from a 128 kBit/s stream, without re-encoding (de-encoding to wav and encoding to ogg vorbis again) the file.

Bitrate peeling will be of greatest use to those with a portable ogg player (there is no such beast yet): You keep a high-quality file on your hard disk and one with a lower bitrate in the player, where space is a greater issue.