ELI5: when a computer stores something like a file or a folder, it needs to know where it lives and where its contents are stored. Normally where the a file or folder lives is the same place as where its contents are. But there are times where a file may live in one place and its contents are elsewhere. That’s a symlink.

So for your video example, the original video is located in Downloads so the video file will say I am movie.mp4 and I live i live in downloads, and my contents are in downloads. While the symlink says, I am movie.mp4 I live in home, and my contents are in downloads over there.

For a video player, it doesn’t care if the file and the content is in the same place, it just need to know where the content lives.

Now how software will treat a symlink as an absolute. For example if you have 2 PCs synced with cloud storage, and both downloads and home is being synced between your 2 pcs. Your cloud storage will look at the symlink, access the content from pc1 and put your movie.mp4 in pc2’s downloads and home. But it will also put the contents in both places in pc2 since to it, the results are the same. One could make software sync without breaking the symlink, but it depends on the developer and the scope of the software.