Rebbi,
Just as an aside, not all file compression technology is lossy.
FOr example, FLAC files can be compressed without losing any digital data, although compressed file sizes will be larger than lossy compression, like MP3, but smaller than uncompressed.
I just converted my music library from uncompressed .wav files to lossless compressed FLAC. Overall size went from ~ 900+ Gb to about 500Gb, which, based on my personal professional experience in the past developing computer image data compression algorithms, I would expect to be typical lossless compression ratios for most digital media content.