Well, with mp3s, it all depends on the bitrate, an to a lesser extent, the quality of the encoding. 128kbits is fairly bad, 256kbits sound better, and anyone who claims that 320kbits sounds bad is just being pretentious for the sake of trying to present themselves as an 'audiophile' and is the same kind of person who spends £200 on a cable. That said, then sure, hugely compressed things do sound bad, but that's no reason to write off anything that isn't uncompressed (bluray uses MPEG-4/H.264 compression).
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