Color information is contained in three channels: red, green, and blue. In addition, an image can include an invisible fourth channel, called an alpha channel, that contains transparency information.

An alpha channel provides a way to store images and their transparency information in a single file without disturbing the color channels.
When you view an alpha channel in the After Effects Composition panel or an Adobe Premiere Pro Monitor panel, white indicates complete opacity, black indicates complete transparency, and shades of gray indicate partial transparency.
A matte is a layer (or any of its channels) that defines the transparent areas of that layer or another layer. White defines opaque areas, and black defines transparent areas. An alpha channel is often used as a matte, but you can use a matte other than the alpha channel if you have a channel or layer that defines the desired area of transparency better than the alpha channel does, or in cases where the source image doesn’t include an alpha channel.
Many file formats can include an alpha channel, including Adobe Photoshop, ElectricImage, Adobe Flash Video (FLV), TGA, TIFF, EPS, PDF, and Adobe Illustrator. AVI and QuickTime (saved at a bit depth of Millions Of Colors+), also can contain alpha channels, depending upon the codecs used to generate these file types. For Adobe Illustrator EPS and PDF files, After Effects automatically converts empty areas to an alpha channel.
The Knoll Unmult plug-in can be used to create an alpha channel from the dark areas of a layer. This works well for a layer with a light effect (such as a lens flare) that you want to composite on top of another layer.Todd_Kopriva said on Oct 8, 2007 at 6:53 PM :
http://www.redgiantsoftware.com/unmult.html
If you're exporting a movie with an alpha channel so that you can composite it with other elements, consider cropping around the opaque portion of the image so that you are exporting the smallest rectangle that contains all of pixels that aren't completely transparent. Transparent pixels still take up memory and storage, so cropping out the transparent pixels around the outside of the image can make the output file smaller.Todd_Kopriva said on Dec 13, 2007 at 2:10 PM :
Aharon Rabinowitz's video "What is an Alpha Channel?" is a good introduction to alpha channels in general:
http://cowcast.creativecow.net/multimedia_101/index.html
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