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The video tutorial demonstrates how to achieve optimal compression rates for 7z and zip files using the 7-zip program. To compress files with 7z format, select files, right-click, choose '7-zip' and 'add to archive', set compression parameters as normal compression, lzma method, 1024 MB dictionary size, 273 word size, 4 GB block size, and 8 or 4 CPU threads, then click ok. For zip format, select 'zip' as archive format, set the same compression parameters, and click ok. Remember to like, comment, and subscribe for more tech videos.