What is a codec?
A codec is piece of software which contains a coder-decoder algorithm for sound. Some people call it a coder-decoder while other people call it a compressor/decompressor. The coder (compressor) is used when creating the sound file, the decoder (decompressor) when playing it. I believe that Windows 95 comes with some simple codecs installed by default; other more sophisticated and more modern codecs can be obtained and installed as desired. In particular, you need to install the appropriate codec in order to play MP3 WAV files. Sometimes you can only easily obtain one half, the coder or the decoder, but the file is still called a codec. Most programs which involve the use of sound in any way, such as games, CD Rippers, MP3 Encoders and MP3 Players install any codecs that they require automatically without you needing to be concerned about them at all. For the curious, a list of currently installed codecs can be found in CONTROL PANEL > MULTIMEDIA > ADVANCED > AUDIO COMPRESSION CODECS. I
A codec (compressor/decompressor) is a program or piece of equipment that can compress signals, such as voice and video, into a digital data stream for transmission. Codecs are used because a compressed file takes up less storage space and can be transferred across a network more quickly and smoothly.
A codec is software that is used to compress or decompress a digital media file, such as a song or video. Windows Media Player and other programs use codecs to play and create digital media files. For example, when you rip a song from an audio CD to your computer, the Player uses the Windows Media Audio codec to compress the song into a compact WMA file. When you play that WMA file (or any WMA file that might be streamed from a website), the Player uses the Windows Media Audio codec to decompress the file so the music can be played through your speakers.