Files can be sorted by categories. This provides another layer of classification for media assets, allowing them to be organized and grouped without changing their physical location. A common setup is to arrange the physical storage as we have by user or by user group in order to make rights assignment easy, but setup a category tree by subject of the media content, to group similar files together. Here is an example:
Category support is built in to DAM, but to ease category management you should install the extension dam_catedit. This extension provides full management capability optimized for DAM categories. We've covered how to install extensions in Chapter 1 in recipe Installing needed extensions, so refer back to it for a detailed description.
Once you have installed the extension, the Categories module will appear under Media.