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AVI is a container format, and not a video format in and of itself. Imagine an egg carton. It can hold brown eggs. It can hold white eggs. It can hold Easter Eggs. It can hold Cadbury chocolate eggs. An AVI is the egg carton. It can hold video and audio data compressed in any number of different formats, including MPEG-1 and MPEG-4. Currently, MPEG-4 (Part 10) is the commonly accepted format for high quality video compression.. also known as H.264 or AVC, used on Blu-Ray and the now defunct HD DVD. It is also used by YouTube for the Apple TV and iPod (but not for the main YouTube site). MPEG-2 is used mostly for DVDs. MPEG-4, being a newer technology, is more efficient and better, in my opinion, but it depends on a host of factors which I won't get into. I always compress to MP4 when I'm doing video work. Anyway... hope this helps.
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