Topic summary
Lossy

Extracted from the Wikipedia article Lossy compression.
Lossy compression is most commonly used to compress multimedia data (audio, video, and images), especially in applications such as streaming media and internet telephony. By contrast, lossless compression is typically required for text and data files, such as bank records and text articles. It can be advantageous to make a master lossless file which can then be used to produce additional copies from. This allows one to avoid basing new compressed copies on a lossy source file, which would yield additional artifacts and further unnecessary information loss.