AVI or audio Video Interleaved is a multimedia container format introduced by Microsoft. AVI files contain both the audio as well as video data in a file that allows synchronous audio-with-video playback. It even supports multiple streaming audio and video files. 

MP4 or MPEG-4 is defined as Moving Picture Expert Group is a container format that allows the combination of audio and video, subtitles and still images in a single file. It is a reliable application than any other video format and is very much compatible with almost all devices.