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The alpha channel determines the transparency of each pixel in a clip; it is similar to the red, green, and blue channels that determine color.
Alpha channels allow us to superimpose one video clip on top of another – and are at the heart of the new Alpha Transition that Apple released with Final Cut Pro 7. Because alpha channels are retained inside the QuickTime movie, this technique allows you to create effects clips that you can use over and over again.
In this video tutorial, Larry Jordan shows you what an alpha channel is, how to create a clip that contains an alpha channel, and how to export it so that the alpha channel is retained.
This tutorial can be used by both Final Cut Pro 6 and 7.