Back in the TUAW days, I used an open-source app called Soundflower on my Mac to route audio between different audio devices and applications when I was doing the TUAW TV Live show. Sadly, Soundflower would often fail me at the worst possible time... Well, today the longtime Mac development firm by the awesome name of Rogue Amoeba has introduced Loopback ($99, special introductory price of $75), a virtual mixing board for the Mac that appears to knock the socks off of Soundflower.
I've used Rogue Amoeba's Audio Hijack tool for many years for recording audio on my Macs, and it's always been useful and bug-free. Like Soundflower, Loopback is designed to take audio content from a number of sources and route it to output devices or other apps. Need a way of taking audio from a microphone, adding music from iTunes to it, and then routing that to a Skype conversation for sharing? Users can create virtual audio devices with Loopback that do just that.
We hope to have a full review of Loopback in the near future. In the meanwhile, interested readers can download a full working copy of the app from the Rogue Amoeba website. The unlicensed version will degrade audio quality after 10 minutes of use.