AVI is one of the oldest video formats still in common use, having been created by Microsoft more than a decade ago. An AVI is an Audio-Video Interleave based on RIFF headers (resource interchange file format). For years, it was the only viable digital video format available.

MPEG is a final product video format. After a video has been converted to MPEG, it should not be edited. Approximately a decade old, yet newer than AVI, the MPEG format was an attempt to provide quality video using smaller file sizes, having been invented by the Moving Pictures Expert Group.

1.Both are lossy formats which sacrifices quality for file size.
2.Both can contain both audio and video data in a file container
3.AVI is thought of as a container format with the MPEG refers to the family of digital video compression standards.

Other Comparison: MOV vs WMV / 3GP vs 3G2 / MP4 vs FLV / MKV vs MP4 / MP4 vs MP3 / 3GP vs MOV / 3GP vs FLV / M2TS vs MP4

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