As a result, the limitations of the Internet require making compromises. Understanding the limitations of web video and the compromises that must be made, is the key to publishing successfully over the web. The Big deal. Nobody looks forward to waiting in line or waiting for a movie to download, it pisses people off. Unless you are the late Andy Kaufman, you don't want to have your film performed in front of a pissed off audience.
Video compression takes a raw video file and reduces it to a smaller size.
However, as a result of compressing the size of the video, the quality of the video will be reduced. Your job, then, is to decide how much video quality can be sacrificed, without losing the meaning of your film. As a general rule, the smaller the movie's file size is, the shittier the quality will be. The trick is to decide how much shittiness is acceptable to the viewer versus how big you want the file to be. Pick the right format, select the right color depth, reduce the amount of frames per seconds, resolution and compression, and you'll have happy Internet viewers downloading your videos in no time.