Shannon's source coding theorem says that if you have data, you can use something called 'coding' to represent that data using fewer bits. This is like when you play a game, and you want to write down the score so that you can remember it later. If the game had 10 points, and the two players got a 4 and a 6, instead of writing down 4, 6 you could write down 01, 10 - and then you've saved some room because you used only two bits in-stead of four. Shannon's source coding theorem states that this kind of coding - where you use fewer bits to represent the data- can always be done.