What type of compression does the MPEG format primarily utilize?

MPEG, which stands for Moving Picture Experts Group, primarily utilizes lossy compression. This method is designed to significantly reduce file sizes by eliminating some data considered less important for the perceived quality of the media. Specifically, in video and audio streaming, lossy compression allows for large amounts of data to be compressed while still maintaining an acceptable level of quality for viewing or listening purposes.

This approach is especially important in applications like streaming video and audio over the internet, where bandwidth can be a limiting factor. By using lossy compression, MPEG formats can achieve smaller file sizes, which facilitates faster loading times and allows users to access content more conveniently.

Lossless compression, on the other hand, retains all original data and is typically used in cases where preserving the complete fidelity of the media is necessary, such as for archiving. Uncompressed formats contain all the original data, resulting in significantly larger files. Variable compression is not a standardized term used in codecs like MPEG and does not accurately describe the compression method applied. Hence, lossy compression is the correct and defining characteristic of the MPEG format.