Gzip compresses by replacing text with pointers to earlier parts of the text. Here's a visualization of what actually happens when you decompress "The Raven". It highlights the bits of text that are copied from previously in the poem.
I showed this as a Thursday talk at Hacker School today :) I really like how you can see the rhyming inside the poem like (rapping... tapping) come out in the compression algorithm.
No sound, just gzip.
You can try it out if you want by cloning https://github.com/jvns/gzip.jl and checking out the 'visualization' branch.
Edit: Some clarifications, for the interested:
I implemented gunzip from scratch to learn how it works. This visualization is a small hack on top of that, just adding some print and sleep statements. You can see the source code that produces it.
This in fact shows how LZ77 compression works, which is the first step of gzip (or DEFLATE) compression. The second step is Huffman coding and isn't shown in the video at all :). If you want to know more, try this excellent but very long page.