Digital audio watermarking is a promising technology for copyright protection, yet its low embedding capacity remains a challenge for widespread applications. In this paper, the spread-spectrum watermarking algorithm is viewed as a communication channel, and the embedding capacity is analyzed and modeled with information theory. Following this embedding capacity model, we propose the extended-codebook spread-spectrum (ECSS) watermarking algorithm to heighten the embedding capacity. In addition, the diversity reception (DR) mechanism is adopted to optimize the proposed algorithm to obtain both high embedding capacity and strong robustness while the imperceptibility is guaranteed. We experimentally verify the effectiveness of the ECSS algorithm and the DR mechanism, evaluate the performance of the proposed algorithm against common signal processing attacks, and compare the performance with existing high-capacity algorithms. The experiments demonstrate that the proposed algorithm achieves a high embedding capacity with applicable imperceptibility and robustness.