What codec do I need for this video file?
There is hardly any video in your AVC file. The data rate is 0.2Mb and the frame is a full size PC desktop resolution (WQHD) instead of a  "real" video resolution such as 1920x1080. 
Based on its size, I'd guess you only have 2 frames in there. That would be stretching a bit if you need a real video file. A low bandwidth (25Mb) AVC source of this size would be 100x bigger.

Try using a standard HD res at the source, a bigger bitrate and more key frames.