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In this video tutorial, the process of compressing file size using WinRAR is demonstrated. The advantages of compressing files include easier uploading and faster data transfer. By following the steps shown in the video, a file originally 415 MB in size was compressed to 220 MB. To achieve this, the user needs to select the folder, right-click, and choose "Add to Archive" with specific settings. WinRAR is recommended as the best compression software for this purpose.