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AndymationB is correct. It's called "3D Panning."
When using this, it may become very quiet when the camera isn't facing the source. If so, go into the Panning tab (regular panning, not 3D Panning tab) and fiddle with the "rear speaker" setting; when facing away, it's coming out of the "rear speaker." But as most people don't have a rear speaker it just gets real quiet. Turning up the rear speaker helps.