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MP3 stands for MPEG Audio Layer III and it is a standard for audio compression that makes any music file smaller with little or no loss of sound quality. MP3 is part of MPEG, an acronym for Motion Pictures Expert Group, a family of standards for displaying video and audio using lossy compression. Standards set by the Industry Standards Organization or ISO, beginning in 1992 with the MPEG-1 standard. MPEG-1 is a video compression standard with low bandwidth. The high bandwidth audio and video compression standard of MPEG-2 followed and was good enough to use with DVD technology. MPEG Layer III or MP3 involves only audio compression.