Streamed audio provided a means of efficiently delivering audio streams to the desktop. But the files were still huge, and greater compression was needed -- which led to the development of the MP3 format. This format filters out extraneous sounds - anything that the human ear can't detect -- and then compresses the result using pattern matching algorithms, much as the JPEG format does for images. The result is much smaller file sizes for even the very best quality audio (often ten times smaller than the equivalent .wav file.

This significant reduction in file size has caused a great deal of fuss in the audio world, as it's now feasible to transmit and share CD-quality audio files across the web. It's also now possible to buy solid-state audio players that use this format, allowing you to download favourite tracks to their memory. Of course, this has worried the Music Publishing industry, as it's possible for artists to create files themselves and distribute the tracks without the need for the middleman (the music industry). There's also potential for pirate copies of audio to be distributed, which the industry claims damages their and their artist's profits. Because of this, many new formats have been created which use some form of Digital Rights Management (DRM), a technology which only allows you to use copyrighted material within particular license conditions.