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LA is a Lossless Audio compression codec. That is, in contrast to formats such as MP3, it reduces the size of music without affecting the quality, as the uncompressed signal is exactly identical to the original. However, the compression ratio is thus far lower than that for .mp3 files - you can expect around 50%, worse for heavier music and better for classical etc.
External link: http://www.lossless-audio.com