Audio data compression, not to be confused with dynamic range compression, has the potential to reduce the transmission bandwidth and storage requirements of audio data. Audio compression algorithms are implemented in software as audio codecs. Lossy audio compression algorithms provide higher compression at the cost of fidelity and are used in numerous audio applications. These algorithms almost all rely on psychoacoustics to eliminate less audible or meaningful sounds, thereby reducing the space required to store or transmit them.

What has the potential to reduce the transmission bandwidth and storage requirements of audio data?