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In this video tutorial, the presenter explains how to reduce the file size of photos on an iPhone. They recommend changing the camera settings to capture photos and videos in the high efficiency format instead of the most compatible format, which uses jpeg.h264 and results in larger file sizes. While the high efficiency format may not offer the best quality, it still provides good quality photos with reduced file sizes. The presenter advises going to the settings application, selecting the camera option, and changing the format to high efficiency to achieve this.