A media content packaging and distribution system for dynamic generation of multi-channel audio includes a server, which stores location information of a plurality of subjects located in a defined area. A subject-of-interest is selected from the plurality of subjects in the defined area. Thereafter, a set of audio-capture devices are selected from the plurality of audio-capture devices. A set of audio streams are received from the selected set of audio-capture devices. A multi-channel audio is generated based on the received set of audio streams. The generated multi-channel audio is communicated to a consumer device. Based on an output of the multi-channel audio by the consumer device, an acoustic environment is reproduced as a surround sound environment at the consumer device from a perspective of the subject-of interest.