An acronym for "compression/deccompression", a codec is an algorithm or specialized computer program that encodes or reduces the number of bytes consumed by large files and programs. Files encoded with a specific codec require the same codec for decoding. Some codecs you may encounter in computer video production are Divx, MPEG-1, MPEG-2, Xivd, DV type 1 and type 2 for video and MP3 for audio.