Digital video formats refer to the various ways video data is encoded and stored on digital devices. Common formats include MP4, AVI, and MOV, each with its own characteristics. These formats determine how video files are compressed, affecting quality and file size. Different formats are suited for specific uses; for example, MP4 is widely used for streaming due to its balance of quality and compression. In contrast, AVI often provides higher quality but results in larger file sizes. Understanding these formats helps users choose the best option for their needs.