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The fundamental principle that underlies the operation of a video codec is to compress and decompress video files for efficient storage and transmission. Video codecs, such as H.264, HEVC, and VP9, perform this crucial function by using various algorithms to reduce the size of video files while maintaining acceptable quality.

This compression is essential because raw video data can be extremely large, making it impractical for storage and streaming over networks. By reducing the file size, video codecs enable smoother transmission across the internet, quicker upload and download times, and more efficient use of storage space. When a video is played back, the codec decompresses the data so that it can be displayed properly.

Without this core function of compression and decompression, streaming services and video sharing platforms would struggle to deliver high-quality video experiences to users. Thus, the efficiency of video codecs directly impacts the overall performance and accessibility of digital video content.