MPEG actually stands for 'Moving Pictures Experts Group'.The HD videos of today are in the MPEG4 extension.
At the beginning of the computer era .Videos captured in the camera and stored in the computer took huge parts of the total memory of the computer. That is even small videos occupied more space in the hard drive .
The 'Motion pictures experts group' were the first to introduce a technology that could compress and play the video .This video (extension) technology gained a lot of popularity among the people 'coz the videos in this extension freed space in their hard drives which has now made development of more advanced extensions of videos like the 3GP which has made video capture in Cell phones possible.
The working of this extension is made possible with the compression and the decompression technology.
That is when For eg:- A mobile device captures a video in the MPEG format then it frames certain codings for the video which is recognized by the decoder in the playing device.The decoder in the playing device is nearly 'Dumb' as it follows just a few strict rules for decoding the video.The video encoder uses the 'Bitstream'
MPEG 1 - started with simple coding and decoding
As time passed by newer version like the MPEG 2 ,MPEG 3 , 4 were released
And now the latest extension MPEG U was released in 2010 which is highly efficient in reducing the size of a video in the hard drive
Look at this video for a better understanding
Look at this video for a better understanding