Learning What MP3 Means Tutorial Home >Music & Video >Digital Music >MP3 Players >Understanding Digital Music >Learning What MP3 Means   Step 1:  MP3 Means a File Format MP3 is a file format. That is, it is a particular way to store information on a computer. Computer programs exist to convert music (or any other kind of sound) into MP3 format and from MP3 format to other useful formats. What makes MP3 important as a file format is that it uses much less space to store a given amount of sound than does, say, the file format used on audio CDs. In fact, MP3 files are small enough to make practical storing music on your PC or sending it over the Internet.   Step 2:  MP3 Means Better Distribution For artist that don't have contracts with record companies, MP3 means a great new way to distribute music. Prior to MP3, it was extremely hard to distribute music, except through channels controlled by the music industry. With MP3, anyone can use the Internet to distribute their music worldwide.   Step 3:  Doing Business the MP3 Way For companies willing to take a chance, MP3 means many new ways to do business. Some companies convert music to MP3 format and sell it on the Internet. Some convert individual songs and give them away on the Net for free, as a way to generate interest in the music. And some flat out give most or all of their music away for free, and rely on advertising at their web site to earn their income.   Step 4:  MP3 Means Difficult Choices For the established music industry, MP3 means difficult choices that must be made immediately. When people can buy individual songs they want on the Internet, it's harder to justify selling music only in CD-sized chunks. When people can download hundreds of thousands of free songs on the Internet, it's harder to justify the price of commercial music. When artists can sell directly to their fans, it's harder to justify the costs and hassles of traditional distribution.   Step 5:  MP3 Means More Options for You For anyone interested in music, MP3 means more options. You can use it to transfer your favorite songs to your computer or to a portable MP3 player, and listen to them whenever you want. You can explore types of music you would never have a chance to hear if not for MP3. You can create your own music, and distribute it to a worldwide audience.