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In this video tutorial, the speaker discusses the importance of file compression and file size when working with images. They specifically focus on the Photoshop format (.psd) versus TIFF files. The speaker explains that they now exclusively use TIFF files due to their smaller file size, which saves space on hard drives without compromising image quality. They conducted tests to demonstrate how converting a 100 MB PSD file to a 50-55 MB TIFF file can effectively reduce storage space while maintaining image quality.