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The video tutorial demonstrates how to achieve optimal compression rates for 7z and zip files using 7-zip. To compress files with 7z format, select all desired files, right-click, and choose 7-zip and add to archive. Use compression level normal, method lzma, set dictionary size to 1024 MB, word size to 273, block size to 4 GB, and CPU threads to 8 or 4. For zip format, select compression level normal, method lzma, dictionary size 1024 MB, word size 273, and CPU threads 2, 4, or 8. Click OK to start the compression process. If you found the tutorial helpful, like, comment, and subscribe for more tech videos.