How AVI Works
AVI (Audio Video Interleave) is Microsoft's original video container, introduced in 1992, and for years it was the default way to store video on Windows. Technically it is a specialized form of Microsoft's Resource Interchange File Format (RIFF), which structures a file as a tree of chunks identified by four-character codes. An AVI file opens with an hdrl chunk describing the streams, followed by a movi chunk holding the interleaved audio and video data, and an optional index listing where each frame sits. The name says it all: audio and video samples are interleaved, stored in alternating chunks so a player can read them together smoothly.
Like the modern containers that followed it, AVI is a container, not a codec: it holds video and audio compressed by some other codec rather than compressing them itself. This is the root of AVI's reputation for unpredictability. Because the container can wrap almost any codec, two AVI files can be wildly different inside, one might play instantly while another needs a codec you do not have installed. The classic "I have the AVI but it won't play" problem is almost always a missing codec, not a problem with the AVI wrapper.
AVI's age shows in what it lacks. It was designed before modern streaming and rich media features, so it has weak support for things later formats take for granted: proper handling of variable bitrate audio, soft subtitles, multiple flexible tracks, and chapter markers are all awkward or absent. It also carries relatively high overhead, which tends to make AVI files larger than an equivalent MP4.
Why AVI Is Considered Dated
AVI has been largely superseded, and the reasons are concrete. Modern containers like MP4 and MKV do everything AVI does and far more: better compression efficiency, smaller files, clean support for multiple audio and subtitle tracks, streaming-friendly metadata, and reliable playback of modern codecs like H.264 and H.265. AVI's interleaved-chunk design simply was not built for the way video is used today, so it has faded from new workflows even though Windows still opens it.
The format does retain a few practical roles. You still meet AVI in older video files, legacy software, and certain capture or editing tools that default to it, and its simple structure can be convenient for uncompressed or lightly compressed intermediate files in some editing pipelines. But for anything new, especially anything that will be shared or streamed, MP4 is the better choice.
When to Use AVI
Use AVI only when something specifically calls for it: a legacy application or device that expects AVI, an older editing workflow built around it, or compatibility with archived files already in the format. If you are simply trying to play or share an old AVI, the most useful step is usually to convert it to MP4, which produces a smaller, universally compatible file that plays everywhere without hunting for codecs. For any new video you create, start with MP4 rather than AVI.
Limitations
AVI's limitations are mostly the cost of its age. Files are larger than modern equivalents because of higher overhead and weaker compression support. The format handles modern features poorly: soft subtitles, multiple flexible tracks, variable bitrate audio, and streaming metadata are all limited or missing. And its codec-agnostic design causes the familiar missing-codec playback failures that frustrate users. None of this makes AVI unusable, but it does explain why MP4 and MKV have replaced it for essentially all new video work.