Since most computers cannot natively grab video from an external source, like cable, a DVD player or camcorder, a capture card gives it that capability. Once the raw footage is stored on your hard drive then you can use the video editing software to make changes to it.
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Video capture card are used for getting the picture from the cable, aerial, or Satellite Television source into a PC. They decode and capture the video signal from the channel you want to view or record.
To record video. In my experience Hauppauge cards are very good. These effectively turn your computer into a Tivo / DVR machine.