Question about movie formats

Hello all,
I'm just curious why all movies are in .avi format and not in .mp4? Is that because of the conversion speed or quality? Lots of devices (iPhone, PSP, iTunes...) doesn't support .avi so why not to convert movies to .mp4? Isn't .mp4 also newer than .avi?
Can anybody explain it to me please?
Thanks

Thank for the link, it's really interesting:)
But I still don't understand, why people converting movies into .avi if you need some other supplies (codecs) to play it and you cannot play it in many devices instead of .mp4, where you don't need anything else and you can play it everywhere you want.
And if .avi is more popular why companies (such as Apple, Sony, etc...) doesn't support .avi format in their devices? It doesn't make any sense. If they would provide the possibility of playing .avi format, many people will use their devices for that. I know many people who own these devices, but non of them plays videos in them, because it is not in .pm4 and nobody want's to convert the movies because it takes so long time...

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