DVD once stood for digital video disc or digital versatile disc, but now it just stands for DVD -- the next generation of optical disc storage technology. DVD is essentially a bigger, faster CD that can hold cinema-like video, better-than-CD audio, and computer data. DVD aims to encompass home entertainment, computers, and business information with a single digital format, eventually replacing audio CD, videotape, laserdisc, CD-ROM, and video game cartridges.

It's important to understand the difference between the physical formats (such as DVD-ROM or DVD-R) and the application formats (such as DVD-Video or DVD-Audio). DVD-ROM is the base format that holds data. DVD-Video (often simply called DVD) defines how video programs such as movies are stored on disc and played in a DVD-Video player or a DVD computer. The difference is similar to that between CD-ROM and Audio CD. DVD-ROM includes recordable variations DVD-R/RW, DVD-RAM, and DVD+R/RW. The application formats include DVD-Video, DVD-Video Recording, DVD-Audio, DVD-Audio Recording, DVD Stream Recording, and SACD.