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Every Blu-ray disc you've ever watched stored its video in .m2ts files — MPEG-2 Transport Stream containers carrying H.264 or H.265 video with lossless or surround-sound audio. The format handles the high bitrates Blu-ray demands (up to 40 Mbps for video alone) and supports multiple audio and subtitle tracks in a single file.
You'll encounter M2TS files when ripping Blu-ray discs or pulling video off AVCHD camcorders. The files are functionally identical to MTS — the container is the same MPEG-2 Transport Stream, just with a different extension convention. Blu-ray uses M2TS; camcorders typically use MTS.
VLC plays M2TS without complaint. For editing, most professional NLEs handle it natively. For sharing, convert to MP4 — a remux is usually sufficient since the underlying video codec is already H.264. Keep the M2TS originals if you care about preserving the original audio tracks (DTS-HD, TrueHD) that don't survive MP4 conversion.