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.