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Video codecs are used in DVD and video CD players and recorders, video broadcast systems, personal computers, and a variety of other applications. In particular, they are widely used in applications that record or transmit video, which may not be feasible with the high data volumes and bandwidths of uncompressed video.
A: Most commercial DVDs use encryption that keeps them locked to one or more region codes, meaning the discs you pick up in other continents usually won't play on an American DVD player. If you believe the movie studios, this encryption is a necessary tool in the ongoing war against piracy.