Digital music compression rates explained

Music Compression Rates - Audio Bitrate Explained
In addition to which file type another key factor determining audio quality is compression rate.
Your CD contains the highest quality audio, but takes up too much space. Compression is the process that squeezes your music into smaller files. While the type of file you opt for is important, compression rate is probably more important.
The amount of compression is governed by the bitrate – how much data is discarded to secure the goal of a smaller music file. The higher the number, the less that gets lost. Bitrates are expressed in Kbps units.
Apple works to 128 Kbps as a bitrate. That’s also their basis for calculating the capacity of your iPod, it’s the quality of music you get from iTunes Music Store.
If you increase your file size (decrease the compression rate) you’ll get an appreciable sound improvement. You have a great deal of control when ripping in iTunes, but 192 Kbps gives noticeably better music, 256 Kbps better still. Our standard setting is 256 Kbps.
So if you’re looking to improve the sound of your iPod (or digital music generally), the first step should be to up the compression rate from 128 (default) to 192 or 256 Kbps. There is an exception - spoken voice. Where the sound source is nothing more than people speaking, for example with audiobooks, there’s no point in going above 48 Kbps and you save space when you do.
Advantages
Low compression rates give higher quality music, but ...
Disadvantages
You get less music on your iPod, the iPod battery runs out more quickly, sync operations will take longer. You should upgrade your earbuds to take advantage of better music.
Should you always go for a lower compression rate?
In our view yes, for 90%+ of our clients its the obvious choice. However, if you have an iPod nano, you want to get as much music as possible on it, you only listen through the standard iPod earbuds, and most of your listening is in the gym, the tube or on the bus the improved quality may not be very noticeable.

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