Lossless and lossy

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Lossless describes a way of compressing data which still keeps all the data. If you have a compressed file, you can use it to create an exact copy of the source file.

Lossy is the opposite to Lossless. Some data is discarded. This makes the file a lot smaller, but reduces the quality of the audio slightly.

Lossy Lossless
MP3, Vorbis, AAC, WMA, All video codecs. WAVE, FLAC