The Decline of AVI and Rise of MP4
AVI was introduced by Microsoft in 1992. It was revolutionary at the time, but it wasn't built for the internet age. It lacks native support for modern compression techniques like B-frames or variable bitrates, which makes files unnecessarily large.
MP4 is the modern successor. It supports high-efficiency codecs (H.264/H.265) that can deliver better quality at half the file size.
By converting AVI to MP4, you aren't just changing the file extension; you are likely upgrading the underlying video stream to be more efficient and compatible.