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clabacchio's answer is generally correct but the major artifact you get other than loosing a part of your frame is that no image stabilization is perfect. Especially iMovie doesn't do the greatest job in tracking the camera movement compared to Premiere, After Effects or Nuke. In order to stabilize a video you need to "find" the movement of the camera and ...


What video stabilization usually does is to correct for camera shake by keeping the features in the video stable or moving smoothly. This "transfers" the shake to the video borders, so you should see black bands appear and disappear. So you lose parts of the frame that are replaced by reciprocal black bands. If you want to remove these artifacts, you can ...

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