A local studio just showed me their video they recorded and put on YouTube... It actually sounds good from YouTube. Can't believe it. Goes to show you that great mic/recording technique win every time!
It certainly helps to start with a well recorded source, do a good full range mix with minimal compression/limiting and no excessive eq or other processing. And of course, include good musicians!
The audio track on that video is the equivalent of a standard 128k 16bit mp3 with a hard 16k ceiling. You can bet that the original sounds considerably better than that.
A 44.1k 16-bit wav would sound considerably better than the mp3 on good equipment. If you could get to the original recording, it's undoubtedly 24-bit, and at least 48k, maybe higher, and would be superior sonically. Most pro studios use 96k to 192k tracking and mixing speeds at 24-bit depth, sometimes with a combination of digital and analog gear. That would get mixed at the prevailing bit rate and depth. From there it would get stepped down to the desired target bit rate and depth, or some studios will do a separate render of the mix for each bit rate and depth to minimize down convert loss. A step down to a 44k-16bit mix master with a quality dither is usually as low as it goes, for standard CD distribution. Then mp3's and other lossy formats are made from that. If your original is a low sampling rate with a lot of processing it will not step down or convert as well, and won't convert to mp3 or other lossy formats as well.
Typically, studio monitoring systems are high enough resolution to clearly delineate the various sample and bit rates from one another. It's very distinctive, and once you have heard it you will easily recognize the differences in any quality playback system.
With good quality source, the playback difference between a regular CD and an SACD at 88.2 or 96k or a DVD-A at 96k or 192k is substantial. If you don't hear a difference (again with good quality source, mastered correctly) your playback gear has insufficient resolution, your ears just can't discern it, or haven't been 'taught' the differences.
For home use, 20-bit is probably sufficient since that resolves to about 120db of dynamic range. But that is most significant if there is also a high sampling rate (at least double 44.1k). Professionally, 24-bit would be considered the minimum at 144db of dynamic range, since standard practice is to record tracks at levels no higher than -12db (some use -18 or -20db as guideline) with no worry, since you have so much dynamic range at your disposal. No matter what, your signal to noise ratio is in excess of 120db.
Yes, there is *much* higher quality audio beyond a standard CD.
--Bill