MP3 uses lossy data compression to reduce the size of digital audio files. It works by analyzing sound within short windows in both the time and frequency domains. It exploits the principles of simultaneous and temporal masking, where certain sounds can mask others that are softer. This allows it to reduce the precision of inaudible audio components. By doing so, MP3 is able to significantly reduce the data rate needed for audio files while still maintaining near-CD quality. For example, a typical 5-minute song compressed to MP3 at 128kbps would be only 4.8MB in size, allowing over 3,000 songs to fit on a 16GB MP3 player.