In this paper we give an overview and compare Huffman and Arithmetic algorithm using PCM audio data 16 bits stereo. The motivation for the study is to increase the transmission speed in the information exchange which is greatly dependent upon the size of the information. Compression has become one of the solutions to the above problem. The quest for efficient audio data compression rate is still ongoing and good quality compression particularly for music files are greatly sought after by the industry as well as users. Currently music files are stored in various formats and the paper will focus on a lossless technique. The technique is applied to raw WAV files with a comparison of two algorithms, namely Huffman and Arithmetic, and to compare the parameters of file size, ratio, speed, the factor of compression and waveform. The results are then compared to previous existing research and then present the difference of the test result on other data such as text and images.
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