DivX is basically a codec. While there may be videos available in this format, it is not really common when discussing DVD formats and others. DivX is a great format to encode video files due to minimum loss when it comes to audio and video quality. It also allows you to compress relatively large video files in to much smaller and more manageable sizes. This format was created by DivX Inc.
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Another technology of Microsoft, AVI is one of the most common video formats around the world. It is used to determine how much data is stored on the video/audio files, along with any other necessary information. When something is stored on AVI format, it cannot be changed at will without bringing in third party converters, unlike when being at the stage when a codec is in place.
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