What is the difference between a playlist and a sequence?

What is the difference between a playlist and a sequence?

A sequence is a series of signs that will play one after the other in a loop. A playlist is a series of video files that will play one after the other in a loop. A playlist is deployed together with a sign which determine the size and position of the video box on the screen. 

Within a sequence it is possible to assign a playlist to a sign if that sign in the sequence contains a video box.