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The video tutorial shows how to achieve the best compression rates for 7z and zip files using 7-zip. To compress files with 7z, select all the files, right-click, choose 7-zip, and add to archive using 7z as the format. Adjust compression settings to normal, lzma method, dictionary size 1024MB, word size 273, block size 4GB, and CPU threads to 8 or 4. For zip files, choose zip as the format, adjust settings, and click OK to begin compressing. If you found the video helpful, like, comment, and subscribe for more tech videos.