"Codec" is a technical name for "compression/decompression". It also stands for "compressor/decompressor" and "code/decode". All of these variations mean the same thing: a codec is a computer program that both shrinks large movie files, and makes them playable on your computer. Codec programs are required for your media player to play your downloaded music and movies.
"Why do we need codecs?"
Because video and music files are large, they become difficult to transfer across the Internet quickly. To help speed up downloads, mathematical "codecs" were built to encode ("shrink") a signal for transmission and then decode it for viewing or editing. Without codecs, downloads would take three to five times longer than they do now.
"What are the common codecs people use?"
Some codec examples are MP3, WMA, RealVideo, RealAudio, DivX and XviD. There are many other more obscure codecs.
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