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VCD was in-keeping with the style of the time. General-purpose compute was expensive, so it was avoided.

Like the red book audio CDs that preceeded them, white book VCDs were a way to make playback a light-weight task on very specialized (maybe even single-purpose) hardware.

That's not necessarily a meaningful goal these days, but our limitations were different back then.

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These were big in the late 90s going into the early 00s. And there were also SVCDs which were MPEG2 video insead of MPEG1. There were a few brands of DVD players that supported them, APEX was the 90s one form China and then Phillips had some models that played lots of formats including avi files. The avi files often used a testing mpg4 video codec in the microsoft video player that got extracted and became the standard and grew into Divx and later Xvid.
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>Wow, what a gross format.

It's about as gross as regular Red Book CD audio. Sacrifice error correction for capacity. Errors in either audio or video streams are non-critical (to a point) and can be masked on playback. That's what C1 and C2 error correction does. There used to be copy protections that played silly games with error correction to foil CD audio rippers while not affecting playback on normal players. Think it was called Cactus Data Shield. It was not very effective.

And similar to VCD disks, the *.cda files Windows shows on audio CDs also aren't real.

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