RM is video container format which is used in conjunction with the program RealPlayer. The format contains audio or video data or a link to a streaming media file. RM is commonly used for streaming content over the Internet and is therefore very important for Internet radio and Internet videos.
AVI is a video container that contains and encodes both audio and video. This container has less compression ability than other similar formats but still it is supported by most of the DVD players. The multimedia players must have the AVI codec in order to decode AVI data.
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