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video taking up to much memory

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I have a canon hf10 and has been recording on the highest setting, my camera has 16 GB internal memory and I can record appx 2h with the highest setting.
I been transferring movies from the camcorder to imovie 09 and everything seems fine. The problem is that when I look in finder to see how much space the movies take up it says 90 GB and I have maybe 1,5 hours of movie. How is this possible??
Lisa
 
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Your Mac's Specs
Late 2013 rMBP, i7, 750m gpu, OSX versions 10.9.3, 10.10
That is normal.

The camera is recording in AVCHD format, which is a highly compressed format. That format is not editable by iMovie (or FCE or FCP) and needs to be converted into a format that is easier to edit. iMovie (and FCE) convert the video into a format called Apple Intermediate Codec (AIC), which causes a file to be between 60 and 70 gig per hour.

AIC reduces the workload on a CPU from decompressing the video footage making editing a much more enjoyable job even on lower end machines.
 

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