Sound can be recorded and stored and played using either digital or analog techniques. Both techniques introduce errors and distortions in the sound, and these methods can be systematically compared. Musicians and listeners have argued over the superiority of digital versus analog sound recordings. Arguments for analog systems include the absence of fundamental error mechanisms which are present in digital audio systems, including aliasing and associated anti-aliasing filter implementation, jitter and quantization noise. Advocates of digital point to the high levels of performance possible with digital audio, including excellent linearity in the audible band and low levels of noise and distortion.

Two prominent differences in performance between the two methods are the bandwidth and the signal-to-noise ratio (S/N ratio). The bandwidth of the digital system is determined, according to the Nyquist frequency, by the sample rate used. The bandwidth of an analog system is dependent on the physical and electronic capabilities of the analog circuits. The S/N ratio of a digital system may be limited by the bit depth of the digitization process, but the electronic implementation of conversion circuits introduces additional noise. In an analog system, other natural analog noise sources exist, such as flicker noise and imperfections in the recording medium. Other performance differences are specific to the systems under comparison, such as the ability for more transparent filtering algorithms in digital systems and the harmonic saturation and speed variations of analog systems.

Dynamic range The dynamic range of an audio system is a measure of the difference between the smallest and largest amplitude values that can be represented in a medium. Digital and analog differ in both the methods of transfer and storage, as well as the behavior exhibited by the systems due to these methods.

The dynamic range capability of digital audio systems far exceeds that of analog audio systems. A 16-bit digital recording typically has a dynamic range of between 90 and 95 dB. Consumer analog cassette tapes have a dynamic range of between 50 and 75 dB. Analog FM broadcasts rarely have a dynamic range exceeding 50 dB. Analog studio master tapes can have a dynamic range of up to 77 dB. An LP made out of perfect vinyl would have a theoretical dynamic range of 70 dB, though measurements indicate actual performance in the 60 to 70 dB range.

The benefits of using digital recorders with greater than 16-bit accuracy can be applied to the 16 bits of audio CD. Meridian Audio founder John Robert Stuart stresses that with the correct dither, the resolution of a digital system is theoretically infinite, and that it is possible, for example, to resolve sounds at −110 dB (below digital full-scale) in a well-designed 16-bit channel.

Overload conditions There are some differences in the behaviour of analog and digital systems when high-level signals are present, where there is the possibility that such signals could push the system into overload. With high-level signals, analog magnetic tape approaches saturation, and high-frequency response drops in proportion to low-frequency response. While undesirable, the audible effect of this can be reasonably unobjectionable. In contrast, digital PCM recorders show non-benign behaviour in overload; samples that exceed the peak quantization level are simply truncated, clipping the waveform squarely, which introduces distortion in the form of large quantities of higher-frequency harmonics. In principle, PCM digital systems have the lowest level of nonlinear distortion at full signal amplitude. The opposite is usually true of analog systems, where distortion tends to increase at high signal levels. A study by Manson (1980) considered the requirements of a digital audio system for high-quality broadcasting. It concluded that a 16-bit system would be sufficient, but noted the small reserve the system provided in ordinary operating conditions. For this reason, it was suggested that a fast-acting signal limiter or 'soft clipper' be used to prevent the system from becoming overloaded.

With many recordings, high-level distortions at signal peaks may be audibly masked by the original signal; thus, large amounts of distortion may be acceptable at peak signal levels. The difference between analog and digital systems is the form of high-level signal error. Some early analog-to-digital converters displayed non-benign behaviour when in overload, where the overloading signals were 'wrapped' from positive to negative full-scale. Modern converter designs based on sigma-delta modulation may become unstable in overload conditions. It is usually a design goal of digital systems to limit high-level signals to prevent overload. To prevent overload, a modern digital system may compress input signals so that digital full-scale cannot be reached

Physical degradation Unlike analog duplication, digital copies are exact replicas that can be duplicated indefinitely and without generation loss, in principle. Error correction allows digital formats to tolerate significant media deterioration, though digital media is not immune to data loss. Consumer CD-R compact discs have a limited and variable lifespan due to both inherent and manufacturing quality issues.

With vinyl records, there will be some loss in fidelity with each playing of the disc. This is due to the wear of the stylus in contact with the record surface. Magnetic tapes, both analog and digital, wear from friction between the tape and the heads, guides, and other parts of the tape transport as the tape slides over them. The brown residue deposited on swabs during cleaning of a tape machine's tape path is actually particles of magnetic coating shed from tapes. Sticky-shed syndrome is a prevalent problem with older tapes. Tapes can also suffer creasing, stretching, and fraying of the edges of the plastic tape base, particularly from low-quality or out-of-alignment tape decks.

When a CD is played, there is no physical contact involved as the data is read optically using a laser beam. Therefore, no such media deterioration takes place, and the CD will, with proper care, sound exactly the same every time it is played (discounting aging of the player and CD itself); however, this is a benefit of the optical system, not of digital recording, and the Laserdisc format enjoys the same non-contact benefit with analog optical signals. CDs suffer from disc rot and slowly degrade with time, even if they are stored properly and not played. M-DISC, a recordable optical technology which markets itself as remaining readable for 1,000 years, is available in certain markets, but as of late 2020 has never been sold in the CD-R format. (Sound could, however, be stored on an M-DISC DVD-R using the DVD-Audio format.)

Noise For electronic audio signals, sources of noise include mechanical, electrical and thermal noise in the recording and playback cycle. The amount of noise that a piece of audio equipment adds to the original signal can be quantified. Mathematically, this can be expressed by means of the signal-to-noise ratio (SNR or S/N ratio). Sometimes, the maximum possible dynamic range of the system is quoted instead.

With digital systems, the quality of reproduction depends on the analog-to-digital and digital-to-analog conversion steps, and does not depend on the quality of the recording medium, provided it is adequate to retain the digital values without error. Digital media capable of bit-perfect storage and retrieval have been commonplace for some time, since they were generally developed for software storage, which has no tolerance for error.

The process of analog-to-digital conversion will, according to theory, always introduce quantization distortion. This distortion can be rendered as uncorrelated quantization noise through the use of dither. The magnitude of this noise or distortion is determined by the number of quantization levels. In binary systems, this is determined by and typically stated in terms of the number of bits. Each additional bit adds approximately 6 dB in possible SNR (e.g., 24 x 6 = 144 dB for 24-bit and 120 dB for 20-bit quantization). The 16-bit digital system of Red Book audio CD has 216 = 65,536 possible signal amplitudes, theoretically allowing for an SNR of 98 dB.

Rumble Rumble is a form of noise characteristic caused by imperfections in the bearings of turntables. The platter tends to have a slight amount of motion besides the desired rotation and the turntable surface also moves up, down and side-to-side slightly. This additional motion is added to the desired signal as noise, usually of very low frequencies, creating a rumbling sound during quiet passages. Very inexpensive turntables sometimes use ball bearings, which are very likely to generate audible amounts of rumble. More expensive turntables tend to use massive sleeve bearings, which are much less likely to generate offensive amounts of rumble. Increased turntable mass also tends to lead to reduced rumble. A good turntable should have rumble at least 60 dB below the specified output level from the pick-up.Driscoll, R. (1980). Practical Hi-Fi Sound, 'Analogue and digital', pages 61–64; 'The pick-up, arm and turntable', pages 79–82. Hamlyn. . Because they have no moving parts in the signal path, digital systems are not subject to rumble.

Wow and flutter Wow and flutter is a change in frequency of an analog device and is the result of mechanical imperfections. Wow is a form of flutter that occurs at a slower rate. Wow and flutter are most noticeable on signals that contain pure tones. For LP records, the quality of the turntable will have a large effect on the level of wow and flutter. A good turntable will have wow and flutter values of less than 0.05%, which is the speed variation from the mean value. Wow and flutter can also be present in the recording, as a result of the imperfect operation of the recorder. Owing to their use of precision crystal oscillators for their timebase, digital systems are not subject to wow and flutter.

Frequency response For digital systems, the upper limit of the frequency response is determined by the sampling frequency. The choice of sampling frequency in a digital system is based on the Nyquist–Shannon sampling theorem. This states that a sampled signal can be reproduced exactly as long as it is sampled at a frequency greater than twice the bandwidth of the signal, the Nyquist frequency. Therefore, a sampling frequency of 40 kHz is mathematically sufficient to capture all the information contained in a signal having frequency components less than or equal to 20 kHz. The sampling theorem also requires that frequency content above the Nyquist frequency be removed from the signal before sampling it. This is accomplished using anti-aliasing filters, which require a transition band to sufficiently reduce aliasing. The bandwidth provided by the 44,100 Hz sampling frequency used by the standard for audio CDs is sufficiently wide to cover the entire human hearing range, which roughly extends from 20 Hz to 20 kHz. Professional digital recorders may record higher frequencies, while some consumer and telecommunications systems record a more restricted frequency range.

Some analog tape manufacturers specify frequency responses up to 20 kHz, but these measurements may have been made at lower signal levels. Compact Cassettes may have a response extending up to 15 kHz at full (0 dB) recording level. At lower levels (−10 dB), cassettes are typically limited to 20 kHz due to self-erasure of the tape media.