Encoding is the process of changing data from one form into another according to a set of rules specifiec by a codec. The data is usually a file containing audio, video or still image. Often the encoding is done to make a file compatible with specific hardware (such as a DVD Player) or to compress or reduce the space the data occupies.

Common video encoding methods are DivX, MPEG-1, MPEG-2 and MPEG-4. A common audio encoding method is MP3 although many others exist including MPEG1 audio, DTS, and Dolby Digital.