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The video tutorial demonstrates how to achieve the best compression rates for 7z and zip files using 7-zip. To compress files in 7z format, select files, right-click, choose 7-zip, and add to archive. In the settings, choose compression level, compression method (lzma), dictionary size (1024 MB), word size (273), block size (4 GB), and CPU threads (8 or 4). For zip format, follow similar steps with different settings. If helpful, like, comment, and subscribe to support the channel.