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Kevin explains how to reduce the size of video files to make them more manageable for various uses, such as inserting into PowerPoint presentations or uploading to Discord. By using a compression algorithm, you can significantly decrease the file size without compromising quality. He recommends downloading Handbrake, a free video transcoder that offers various features beyond compression, such as cropping, resizing, and rotating videos. Handbrake allows for efficient video editing to enhance your content.