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I want to learn methods for data compression, also how to convert video from MP3 to MP4. Does it depend on bit manipulations? If yes, how?

+4  A: 

If you're using a computer, everything depends on bit manipulation.

That said, there's no clean conversion between MPEG layer 3 and MPEG layer 4. They're different compression schemes. The exact differences come down to a lot of very complex mathematics that requires an advanced background in mathematics and a lot of quality time with the standards.

Good luck and good reading.

Kalium
+1  A: 

The field of compression is quite large. Text compression is substantially different from image/video lossy/lossless compression which are different from sound lossy/lossless compression.

Pretty much everything in CS depends on bit manipulations. Use codecs I'd say.

Mau