AVI File types were created by Microsoft in 1992 as a way to have a multi-media file type that contains both video and audio. Since AVI files are an older file type, they lack features and the compatibility that more modern file types have. 

In recent years a more common multimedia video files type is the MP4 (MPEG-4). MP4s came on to the scene in 2001 and offer greater compatibility with more systems as well as additional features that can be stored within the file itself. 

There are several other key differences between the two files types such as the supported video formats (codecs), the supported audio formats, supported devices and the supported media players.