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In this video tutorial, the speaker discusses file compression and file size, focusing on the use of the Photoshop format (.psd) and TIFF files for saving images. The speaker used to save images in .psd format but now prefers TIFF files due to their smaller size, which helps reduce the amount of space needed on hard drives. By saving images in TIFF format, users can save half the file size without sacrificing quality, making it a more efficient choice when working with multiple images and layers.