mkv it's not a new format. It's old enough. It's the container named Matroska and seems to be preffered among the encoders for some features that avi container can't handle properly. In a matroska container you can insert video, multiple audio (one 2.0, one 5.1 and so) and multiple subtitles streams. Also support for a larger number of video compressors than avi format (x264 to mention it's more than enough).
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