The first really good video codec was MPEG-4 H.264. I remember in 2001 my housemate watching a movie on his telly — playing off a CD-R. A whole movie crammed onto a CD, encoded with DivX!
DivX was an implementation of MPEG-4 ASP, also known as H.263. H.264 came much later with x264 being the most well-known encoder (hence its name).
ASP in my opinion never got the biggest chance to shine with regards to quality because the target medium was often the CD which limited file size to 700MB, and once DVDs became an option, people went back to MPEG-2 because that’s what the players were all compatible with. Sometimes even (S)VCDs were used still. Standalone players with ASP support came rather later.