Mp3 is an audio file that has been digitally encoded and compressed to make the amount of data smaller without compromising the overall sound quality. It's a revolutionary technique with incredibly good results; delivered this way is frequently indistinguishable from found on a CD (though some audiophiles with very sensitive ears dispute that statement).
The popularity of digitally recorded and delivered made available on the Internet is a trend reaching gigantic proportions; these encoded songs are everywhere. Websites called blogs offer rare or hard-to-find mp3 and avid fans sometimes spend hours at a time sifting through the piles of downloadable material. Newer recording artists that would often fall under the radar without the help of a well-known label are now able to convert their songs into this form and make them available on the Internet, allowing huge numbers of people the chance to hear songs that they otherwise wouldn't have been exposed to. It's an extremely popular thing, recorded and delivered on mp3, one of those rare pop-culture phenomena embraced by nearly everyone.
And
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now with the advent of the IPOD and other similar devices for MP3's, both and instructional audio files are both widespread and growing in popularity. Some of the newer models of autos feature MP3 capability, broading the appeal even further.
But regardless of its massive popularity, mp3 is surrounded with controversy. Many programs that allow users to transfer files directly from computer to computer offer the services for free, eliminating the possibility of royalties for the artist and label. Fearful of losing tons of money to fans downloading records instead of buying them, large factions of the industry fought to make free mp3 illegal -- and succeeded to a degree. The laws, however, have loopholes, and many websites or P2P programs have exploited them for all they're worth.
Additionally, laws regulating mp3 in the United States aren't necessarily applicable to other countries, so new websites and programs (particularly, for some reason, in Russia) have popped up offering the free services railed against in America. Because of the hotly argued ethical issues surrounding mp3 music, many shy away from the topic (and practice) completely. Others embrace it, citing huge record costs as justification enough for free delivered via MP3. It's an argument not likely to end anytime soon; the ethical issues will be debated as long as free mp3 is available somewhere.
In any case, MP3's are here to stay, and wise is the musician who learns about them and takes advantage of them.