MTS is more commonly known as AVCHD (Advanced Video Coding High Definition) and is used as a video format for high definition video. MTS supports both 1080i and 720p in a relatively small file size. MTS files can typically be opened and edited using the software included with Sony and Panasonic HD camcorders.
MTS is a file extension and used for the Blu-ray Disc MPEG-2 Transport Stream container file format. The container is a modified version of the MPEG-2 transport stream specification for Blu-ray discs, DVD's, Hard Disks or solid state memory cards.