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In the video tutorial, the creator shows 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 to reduce file size. This setting will use less space but may slightly decrease image quality. To do this, go to the camera settings in the iPhone's settings application and select high efficiency format. This step is well-known to many, but it is a useful tip for those unfamiliar with the process.