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In this video tutorial, the creator demonstrates how to reduce the file size of photos on an iPhone. They recommend changing the camera settings to capture photos and videos in high efficiency format instead of the most compatible format, which uses jpeg.h264. While the high efficiency format may slightly lower the quality, it will significantly reduce the file size. This can be done by going to the settings application, selecting the camera option, and changing the format to high efficiency. This simple adjustment can help free up storage space on your device.