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The video tutorial discusses file compression and file size, focusing on the Photoshop format (.psd) and TIFF files. The speaker explains that they now prefer using TIFF files over PSD files due to the significantly reduced file size. By saving images in TIFF format, they can decrease file size by half without sacrificing quality, making it more efficient when working with multiple images and layers. This choice allows for more free space on the hard drive while maintaining image quality.