This means that with container formats like MP4 or AVI, you don't know exactly what data is included. For example, an MP4 file can contain video data with the codecs H.265, H.264 or even MPEG-2 and even MPEG-1, as well as image data with the codecs JPG and PNG and audio with the codecs MPEG-4 Part 3, AAC, MP3, MP2 and MP1. Many of these file formats are known as containers, because they contain data that can be packaged in various ways. This reason for this is that while there are thousands of file formats, there are only a few compression methods. Since most file formats use the same compression methods, however, there aren't a ton of technical differences. Every software or hardware manufacturer develops their own file format – that's why there are so many different video formats and file extensions available. Anyone who edits videos using a computer has to work with different video formats – from older formats such as AVI and MPG or newer MP4 files to WMV, AVI, MOV, FLV, MKV and a thousand other file extensions.
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