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AVI means Audio Video Interleave, a popular video container format developed by Microsoft back in 1992. This file format can hold different types of video and audio streams for synchronized playback. It became the most used video file format for its simplicity and compatibility across different platforms. AVI file format is commonly used for containing movies and TV shows in small size with great quality. AVI files also can contain lossless video which are great for editing in VideoStudio Pro.