Digital video is a sequence of picture signals (frames) that are represented by binary data (bits) that describe a finite set of color and luminance levels. Sending a digital video picture involves the conversion of an image into digital information that is transferred to a digital video receiver. The digital information contains characteristics of the video signal and the position of the image (bit location) that will be displayed. The basic process of creating digital video is the image digitization process, compression analysis that produces key frames and difference frames, and formatting the data into files or streams (video formats).

Image Digitization - Image digitization is the conversion of visual signals into digital form that represent them. Each image in a video sequence is digitized into component parts. Each image may be analyzed and converted to a representation (approximation) of its original.

Key Frames - A key frame is a reference video frame image that is part of a series or group of related frames that contains all the information needed to create its image. Because all of the image information must be contained in a key frame, the data size of a key frame can be relatively large. Key frames in an MPEG signal are called I-frames.

Difference Frames - Difference frames are images (pictures) within a sequence of images (such as in a video sequence) that are created using information from other images (such as from key frames (I-Frames). Because image components are often repeated within a sequence of images (temporal redundancy), the use of difference frames provides substantial reduction in the number of bits that are used to represent a digital video sequence (temporal data compression). Difference frames in an MPEG signal are called p-frames or b-frames.

Video Formats - Video formatting is the method that is used to contain or assign digital media objects or components within a file structure or media stream (data flow). Video formats are usually associated with industry standards like MPEG, Quicktime MOV format, or the Windows Media WMA format.