Think of placing two strips of black paper over the top and bottom of a picture. The objects in the shot stay as they are; only the visible window feels wider.
Add a letterbox matte or overlay in the editor and set the bar height. On the web, place top and bottom black layers over the original scene and animate or size them as needed.
Unlike stretching or cropping, the bars mask the picture. The footage keeps its original aspect ratio, and bars that are too tall can hide useful action or subtitles.
When to use
Use it to emphasize a wide composition. Check that bars do not cover subtitles or important movement.