Abstract: A system and method for storing and managing digital content is disclosed. Uncompressed digital content is obtained and automatically stored on a memory device, such digital content becoming immediately available to a user from the memory device. Imperceptibly to the user, the digital content is compressed, the compressed content is stored on the memory device and the uncompressed content is deleted from the memory device. The user shall have complete access to the digital content at all times, and is unaware in what format (compressed or uncompressed) such content is present.