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MP4 is an extension defined by MPEG-4 video standard and AAC audio standard. It is a container that supports all kinds of media such as video, audio, subtitles, 2D and 3D graphics. It is possible to open MP4 file with almost any player on Windows but on Mac you should use a plug-in or just convert the file to another format.

MPG is an extension used for files compressed with MPEG-1 or MPEG-2 standard. MPG files can be played on Windows, Mac and any mobile devices. The first versions of this format were significantly limited, supporting low video resolution and limiting data bandwidth, but latest standard updates allows it to be used even in HDTV broadcasting.