Windows Media Encoder (incl in Windows) and VLC can both take output
from sound card or other sound source and sends as a stream (WME
canonly send WMA, VLC can send as MP3).

However what you need is an additional sound source (i.e. a virtual
soundcard)  otherwise the app has to send audio to real audio.  I think
Virtual Cable can creates the virtual soundcard.


-- 
bpa
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