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Kevin demonstrates how to make video files smaller to save space, making it easier to insert videos into PowerPoint presentations or share them on platforms like Discord. He showcases two videos with different file sizes, emphasizing the importance of using efficient compression algorithms. Kevin recommends using the free Handbrake video transcoder for file size reduction and other editing tasks like cropping, resizing, and rotating videos. Handbrake offers a wide range of features beyond just compressing videos.