You could click here to see why we choose iCoolsoft MTS Converter as an example.
First of all, free download iCoolsoft MTS Converter and install it in your computer. Launch it after the installation.
Secondly, click button "Add Video" to add the HD MTS file you want to convert. You can also use the "File" button.

Thirdly, choose HD AVI output format from "Profile" drop-down list.
Tips:
> Click button "Settings" to set the output parameters if you need. You could see that the Resolution has already been selected as 1920*1080 automatically since you have chosen HD AVI as the output format.
> Add watermark
You can use the converter to add text or picture watermark to the recorded MTS video. Check "Enable Watermark" and then "Text", input what you want to add in the blank. Button "T" can help you to set the font, size, color, etc. of the text.
To add picture watermark, you have to check "Picture" and click "Folder" to find the picture in your local disc. Dragging or adjusting the values in the boxes can help you to locate the watermark at the place you prefer.

* You could also try the other editing functions, such as trimming, cropping, and adjusting effects.
Fourthly, click button "Browse" to set the destination for the output files.
Lastly, click button "Convert" to start converting HD MTS files into 1080p AVI format.
The above five steps are all you need to do to convert HD MTS video to 1080p AVI format. The conversion speed of this software is very fast. And the software also supports batch conversion so that you can save more time.
For Mac users:
HD Converter for Mac
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