There are three main types of audio file formats: uncompressed, lossless compression, and lossy compression. Lossless compression preserves all audio quality while reducing file size, while lossy compression permanently removes some audio information to greatly reduce file size. Common audio formats include WAV (uncompressed), lossless WMA, MP3 and AAC (lossy), and MIDI (event-based musical instrument data). Audio is digitized through sampling, with higher sampling rates and more bits per sample providing better quality but larger file sizes. Formats like WAV and AIFF store uncompressed audio, while MP3 and WMA use lossy compression to reduce file sizes.