AC3 is an audio format designed by Dolby Digital to offer surround sound listening. This format is available on most Blu-ray and DVD media files and is played using a Dolby Digital DVD Player. Interestingly, AC3 can be output in up to six speakers of a home stereo system. On a computer, AC3 can be opened on VLC Media Player, Apple QuickTime Player, and Windows Media Player.
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AVI (Audio Video Interleave) is a digital multimedia container format developed by Microsoft in 1992 for its Video for Windows project. This file format saves both video and audio data in its container that supports synchronous audio-with-video playback. And like DVD format, AVI allows multiple audio and video streaming as well.
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