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Compression of multimedia files relates to the information process of storage and retrieval, in that a file can be saved at smaller file size it once it has been compressed.

The mp3 file format became a standard due to their seamless method of compression in which their was no notable loss in the quality of audio files and by reducing the file size so drastically, allowing for audio files to be streamed and distributed by app stores, changing the landscape for how music was purchased.

The reduced file size meant songs could be downloaded faster and take up less space when stored on systems. Overall the reduction in the file sizes of media has enabled for more data to posted and processed online as a result of vastly smaller files sizes of media.

Compression can take the forms of lossy or lossless compression. Lossy compression is when a file cannot be decompressed back to its original form, where lossless compression can be reverted back to its original uncompressed format as the file retains compression data. The type of compression applied to a file may be reflected in its file extension. For example an uncompressed image file may be saved in a .bmp format, with different types of compression applied if that file is then converted into either a .jpg, .gif or a .png file format.