MOD video can be viewed on a computer with a player that is capable of reproducing MPEG-2 video. This video can be easily authored for watching on a DVD player without recompression, because it is fully compliant with DVD-video standard.
This format was originally created as an alternative to mp3. The idea was to achieve a small file size with better sound quality. The first versions weren’t quite successful, but with the development of AAC, it became possible to store sound with less loss of quality, and with the same file sizes as that of mp3.