It's a better-than-average simulation of Dolby Digital or Dolby Atmos. Better than tv speakers or a sound bar. But the proper configuration has the two speakers positioned 6-8' in front of you near the TV. The sound won't magically wrap around your head and appear to "surround" you.

You also need an Apple TV and decent wifi. It's a completely wireless sound system (wifi, not bluetooth) so it can be temperamental if you have weak signal, interference, etc.