Final answer:
Digital video is compressed to reduce file size while maintaining quality. There are two main types of compression: lossy and lossless, which differ in their impact on video quality.
Step-by-step explanation:
To save storage space, digital video is compressed. Compression involves using algorithms to reduce the size of a video file while attempting to maintain its quality. There are two types of compression: lossy and lossless. Lossy compression reduces file size by eliminating some data permanently, which can affect video quality, while lossless compression reduces file size without any loss of quality, though typically not as significantly as lossy methods.