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This video discusses the importance of file compression and file size when working with photos. The speaker recommends using TIFF files instead of PSD files for saving images, as it reduces the file size significantly without sacrificing quality. By using TIFF files, you can save space on your hard drive and still maintain the integrity of the image. It is more practical, especially when working with multiple images and layers. The speaker demonstrates this through tests to show the difference in file sizes between PSD and TIFF formats.