H.264 (MPEG-4 AVC) is a video codec standard which can achieve high quality video in relatively low bitrates.
H.264 is a new video codec standard which can achieve high quality video in relatively low bitrates. You can think it as the "successor" of the existing formats (MPEG2, MPEG-4, DivX, XviD, etc.) as it aims in offering similar video quality in half the size of the formats mentioned before. Also known as AVC (Advanced Video Coding, MPEG-4 Part 10), H.264 is actually defined in an identical pair of standards maintained by different organizations, together known as the Joint Video Team (JVT).
Encoding to H.264 is possible under Ubuntu Linux by using the Free Software encoder x264, either directly via the command-line or indirectly by using it through vlc or avconv.
Source:xDVD