A formula or set of steps used to simplify, modify, or predict data. Complex algorithms are used to selectively reduce the high digital audio and video data rates. These algorithms utilize physiologists' knowledge of hearing and eyesight. For example, we can resolve fine detail in a still scene, but our eye cannot resolve the same detail in a moving scene. Using knowledge of these limitations, algorithms are formulated to selectively reduce the data rate without affecting the viewing experience.

See also: Compression, MPEG.