What is binaural audio? From the web .... Binaural recordings are reproductions of sound the way human ears hear it. In fact, the word “binaural” literally just means “using both ears.” When you listen to a binaural recording through headphones, you perceive distinct and genuine 360° sound. Here is another definition with basic primers on what equipment you need, and how to do it and the Wikipedia entry for binaural recording.
Check out this walkthrough in New York City which also shows you the equipment being used to go 360 on audio.
Here's a simple video asking a simple question.
From the Occulus sphere of products, this animated robot showcases in a simple way the potential and importance of going 3D on audio to really immerse the viewer. Just like with "flatty" videos, or flatties, audio should still reign supreme if you really are going VR/360.
Binaulab Audio 3D is one of the channels available on YouTube offering 3D audio fare, including remixing classic songs, as if you were in the "middle of the perfomance". Happy listening!