How does Alpha channel make videos more transparent?

The advanced capability is support for alpha channel transparency in videos.

There are cases where you may want to use video elements in a more immersive way. Now with alpha channel transparency support, videos can use masks to isolate items and create transparency, eliminating the rectangular frame. Think of it as the video equivalent of transparent PNGs, while JPGs always have a rectangular shape.

Take, for instance, the example below. Our original video asset of a tiger walking on a green screen can now be modified to make the green background disappear, making for a more immersive video when viewed in Augmented Reality. In the top left is the original video, below that is the alpha matte we created, and on the right is how the video would appear in Augmented Reality.

But you don't need green screen footage in order to use transparency in videos. You can either create masks on-the-fly with video effects software (like rotoscoping, which can be very difficult), or you can just use animated digital assets created with video effects or 3D modeling software (like animated text, characters or logos) that are already isolated on a transparent background.

Supported 2D

Supported 2D models format: png with or without transparency

Supported 3D models format: fbx, obj, 3ds max 2015