What does CODEC stand for in relation to video files?

In the context of video files, CODEC stands for Compression and Decompression. This term refers to the methods used to reduce the size of video files for storage and transmission (compression) and then to convert the compressed files back into a format that can be played (decompression).

The importance of a CODEC lies in its ability to efficiently manage the amount of data in a video file while preserving the quality of the image and sound. For video streaming, for instance, compression helps reduce the bandwidth required, allowing smoother playback over varying internet speeds. When the compressed file is played back, the decompression process reconstructs the original video data for viewing.

The other options do not accurately describe what CODEC stands for or its purpose in video file management. For instance, "Compressed Data Encoding" suggests a focus only on the encoding process without mentioning the essential decompression part. It is critical to highlight that both compression and decompression are necessary functions that define the role of a CODEC.