MXF files were developed as a response to a growing need for computers to quickly and efficiently handle audio and video files. Several technology manufacturers developed proprietary standards for this file type, which led to incompatible formats and standards. The incompatibility prompted the SMPTE to ratify a universal MXF standard. The creation of this format as a wrapper allowed media software developers to inter-operate files created in different applications. The metadata in each file would specify how the MXF file as a whole worked, regardless of the platform.

MXF files contain two kinds of packages: file and material. File packages contain source material files, such as audio interviews and commentaries, or video highlights or news broadcasts. Material packages contain timeline information, such as when to play certain material files. For example, an MXF file may contain two file packages and one material package. The material package designates that the decoder first play a sports highlight file package, followed by an interview clip file package.

Several electronics and software applications can create and use MXF files. For example, high-end cameras record data using MXF so when the files are transferred to a video server, the software applications can import and use the files. MXF files can be used at any stage of development, including pre- and post-production of videos. When recording, an MXF file includes a timecode for each individual frame of a video, which helps you identify material in the recording.

MXF files can contain several kinds of media, including audio, video, data and metadata. The files can wrap several other file formats, such as MP3 and AVI, or uncompressed PCM files. When these files are wrapped in an MXF format, no conversion takes place. The original files do not lose quality. High-definition video and audio files with multiple soundtracks retain all data, and look and sound the same as if they were not part of an MXF package.