Heducate me baby...CoDecs compress and decompress data. The word CoDec is a shortening of the term Compressor/Decompressor. Compressing a data stream or a file reduces its data rate. This cuts costs all the way down the line. It reduces the bandwidth required for transmission or broadcasting and the amount of space required for storage. Before the data can be used, though, it has to be decompressed. Both phases of a CoDec's work can be carried out in hardware, in software or a combination of both.