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This video discusses file compression, file sizes, and different formats to use, specifically focusing on the Photoshop format (.psd) versus Tiff files. The creator used to save images in the .psd format but now prefers Tiff files due to smaller file sizes, which saves space on hard drives. By switching to Tiff files, the creator can reduce a 100 meg image to 50-55 meg without sacrificing quality. The video includes tests to demonstrate these points.