A method and disc drive are disclosed that employ dynamic buffer size allocation for handling multiple data streams, such as time-sensitive audio/video data. The method involves allocating a certain amount of required buffer space for each data stream to be handled without an interruption in recording or playing back the data stream. The method further involves reallocating the amount of required buffer space for each stream including any additional stream when one or more additional streams are to be added to the total number of streams being handled. The method also involves reallocating the amount of required buffer space for each stream including those streams that remain after any of the data streams being handled are terminated.
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