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In this video tutorial, there is a comparison between an uncompressed image using 46 megabytes of space and a compressed JPEG image using 4.1 megabytes. The video explains how the JPEG algorithm compresses images to just a tenth of their original size while maintaining image resolution and high quality. It emphasizes the importance of the algorithm due to the prevalence of JPEG format in digital images from phones and cameras. Additionally, it mentions the widespread use of video compression algorithms like h.264.