H.264 is a next-generation video compression format. H.264 is also known as MPEG-4 AVC. Developed for use in high definition systems such as HDTV, Blu-ray and HD DVD as well as low resolution portable devices such as Sony’s PSP and Apple’s iPod, H.264 offers better quality at lower file sizes than both MPEG-2 and MPEG-4 ASP (DivX or XviD).