MP3 is a digital compression standard for audio files. What is so revolutionary about MP3 compared with previous standards before it, such as Wave files, is its small file size and CD quality output. This means that MP3 songs can be downloaded relatively quickly, with each song being only about three to four megabytes each.

The MP3 format has attracted a lot of attention since it was first released. The open standard has meant that surfers could log into sites and download the latest songs free. The Internet was then swarmed by masses of MP3 dedicated sites, such as MP3.com offering a huge range of free music. Through all this, the MP3 player Winamp has made a huge name for itself, especially with the popular idea of "skins" that let users personalise the look of their player.

Piracy soon became a real problem for the music industry, as MP3 songs could be easily downloaded and copied without the record company or artist receiving any revenue. Fortunately, progress has been made since, with the release of two new major standards, MP4 and Windows Media 4.0 both offering copy protection features.

Record companies were strongly against the evolving Internet music scene, sticking firmly to their current retail CD distribution system. However, they have finally realised now that if they do not embrace digital distribution, they will be left behind by consumers. Commercial companies have also seen the need to be at the front of the digital revolution, with the development of several lightweight MP3 portable players, such as the Rio PMP300 and the Nomad.

Sony has taken up the digital challenge, recently announcing it would soon offer singles using Microsoft's Windows Media 4.0 format for a few dollars each, a fraction of the cost of buying a full album. Digital distribution is great for consumers. It means greater choice and cheaper music. No longer will you have to buy songs at music shops. Instead you can quickly download the songs you want at home. Record companies maybe singing the MP3 blues at the moment, but it is certain that we will be seeing more and more record companies selling online in the next few years.