Component Versus composite
In a composite signal, the luminance, Brightness (Y) signal and the chrominance, Color (C) signals are encoded together into one signal. When the color components are kept as separate signals, the video is called component analog video (CAV), which requires three separate signals: the luminance signal (Y) and the color difference signals (R-Y and B-Y).
Component video does not undergo the encoding process, the color quality is noticeably better than composite video.
Component video connectors are not unique in that the same connectors are used for several different standards; hence, making a component video connection often does not lead to a satisfactory video signal being transferred. Many DVD players and TVs may need to be set to indicate the type of input/output being used, and if set incorrectly the image may not be properly displayed. Progressive scan, for example, is often not enabled by default, even when component video output is selected.
Read more about this topic: Component Video