Common Video Formats :

Format Common Applications Common Codecs Requirements
Quicktime CD/Multimedia, Internet, Non-Linear Editing Cinepak, Indeo, Sorenson Downloadable Player (Pre-Installed on most Macs)
AVI CD/Multimedia, Internet, Non-Linear Editing Cinepak, Indeo, Microsoft Video Windows 95/98/NT or Downloadable player for Windows 3.x & Macintosh
DirectShow CD/Multimedia, Internet, DVD --- Downloadable Player + Windows
MPEG-1 CD/Multimedia, Kiosks, Internet --- Hardware Decoder or Software Decoder + High End Machine
MPEG-2 Broadcast, DVD --- Hardware Decoder,
DVD Player
Streaming Video Internet RealVideo, MPEG-4, TrueMotion, VDOnet Downloadable Player
Each codec uses a unique algorithm to calculate how to optimally decrease a movie's data rate (the amount of data transferred per second). Video played through a CD-ROM requires a data rate of 200-300 KB/Sec, while video over the internet requires even less (about equal to the target modem speed). Considering full-frame, uncompressed, 30 fps video has a data rate of about 30 MB/Sec, there is an enormous amount of data that needs to be omitted. Each codec is different in how it chooses to "drop" information, whether it be by decreasing the frame rate, lowering image detail, sampling fewer colors, etc. 

Compression quality also depends on the movie content and movement occurring in the movie.

Currently, the newest codecs, Indeo 5 and Sorenson, provide the highest quality video with extremely low data rates. Their only setback is that most users do not have these new codecs installed on their machines. Consequently, if you choose to distribute video compressed with these codecs, you must provide users with the appropriate codec installation software, both of which are available as free downloads from their respecive sites.