This episode explains the fundamental principles of digital sound representation, starting with the conversion of analogue sound signals into a digital format using Analogue to Digital Convertors (ADCs). It details key concepts such as sample rate, measured in Hertz (Hz), which determines how frequently a sound wave is measured, and bit depth, which specifies the accuracy of each measurement. The document also clarifies how these factors directly influence both file size and the quality of playback, illustrating the trade-off involved. Finally, it differentiates between lossy (e.g., MP3) and lossless compression (e.g., FLAC) methods, outlining their impact on file size reduction and audio fidelity.