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The Media module provides an extensible framework for managing files and multimedia assets, regardless of whether they are hosted on your own site or a 3rd party site - it is commonly referred to as a 'file browser to the internet'.
Media is a drop-in replacement for the Drupal core upload field with a unified User Interface where editors and administrators can upload, manage, and reuse files and multimedia assets. Any files uploaded before Media was enabled will automatically take advantage of for many of the features it comes with.
Media's aim is to solve Drupal's long standing media handling problem.