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When compressed data that is subsequently decompressed does not exactly match the original, yet it is considered close enough to the original to be usable, that algorithm is called a lossy compression.

Contrast that with lossless compression, where the decompressed version exactly matches the original. Lossy compression is useful in audio and video, where exactness is not critical, while lossless compression is useful in data streams that must be preserved exactly. The lossy compression algorithm often results in more compact compressed results.

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