
One person's editor became everybody's
VirtualDub was written by Avery Lee and released free. For years it was the default way to cut and filter AVI on Windows.
DivX ;-) 3.11 Alpha was a hacked build of Microsoft's MPEG-4 implementation. It made a feature fit on a CD-R, and a company formed around what followed.
A modified Microsoft encoder puts a feature film on a disc that costs almost nothing, and the industry finds out afterwards.
H.264 is ratified. Hardware decode reaches consumer silicon before the licensing argument is anywhere near finished.
AV1 arrives in 2018 with no toll booth, specified that way from the first draft because HEVC had turned up with several.

VirtualDub was written by Avery Lee and released free. For years it was the default way to cut and filter AVI on Windows.
Most tools that claim to convert video are calling FFmpeg. It is the piece the ecosystem depends on and the piece nobody markets.
The AVI container came from 1992 and predates most of what people put in it, which is why variable bitrate audio and modern subtitles fit so badly.
A fixed bitrate spread over more pixels means less for each one. Every encode is a decision about where that shortage should show.
Lossy compression discards information permanently, so re-encoding compounds. The second pass cannot recover what the first threw out.
Trade-offs
Keyframes are stored whole rather than as differences. Too few and seeking breaks; too many and the file grows.