The software allows both storyboard and timeline-oriented editing. Different formats are supported for source clips, and the resulting video can be exported to DVD, AVCHD, HD-DVD and AVI. VideoStudio also supports direct DV and HDV capturing to disk.
Video transitions are placed into different categories such as FX, which contains assorted video effects such as 'Burn' and 'Fade to black'; 3D, which contains assorted 3D transition effects; and Album, which creates a slideshow effect similar to that of a photo album.
 Video Filters
There are a variety of video filters which either perform basic color adjustments (e.g. brightness and contrast), blurring or sharpening footage, and fun effects such as kaleidoscope (which simply makes the video simulate a kaleidoscope). One special filter is Chroma key, which allows for bluescreen and green screen effects.
Users are able to overlay a Flash animation, an image, or text onto the video. However, the number of overlays allowed is limited.
 Other Features
VideoStudio is able to change the speed at which the video plays, reverse it, and modify the hue and saturation. It can also trim, crop and split the video tracks. The soundtrack can be split from the video track, allowing the audio to play at a different pace than the video.