Nero Digital is a video codec for video compression and audio compression of high quality. Nero Digital works standard compliant with MPEG-4 and supports both compression types with two video codecs and two audio codecs each.
The video codec of Nero Digital uses Advanced Video Coding( AVC) as compression method for video for the audio compression Advanced Audio Coding( AAC) with low complexity and with High Efficiency AAC( HE-AAC), resp. aacPlus. For video compression, there are several profiles, such as Simple Profile( SP) for low bit rate and low resolution applications, such as can be used for small display in cell phones, and Advanced Simple Profile( ASP), which is roughly equivalent to the H.263 standard. MPEG quantization and interlace support is essentially similar to MPEG-2.
Nero Digital has very high compression rates and factors, and can also decode other MPEG-4 implementations such as XviD or 3ivx. Nero Digital's MPEG-4 videos are stored in MP4 containers that can be created with chapter information and subtitles.
Nero Digital competes with XviD and DivX and is rated at comparable or better quality depending on the test subject and environment. Like the other video codecs, Nero Digital targets consumer electronics with camcorders, DVD technology, smartphones, etc.