Video compression techniques exploit correlations in pixels over space and time, as well as limitations of human perception, to reduce file sizes. Key techniques include discrete cosine transform (DCT) to concentrate information, motion estimation and compensation to reduce temporal redundancy, and entropy coding like Huffman or arithmetic coding to remove statistical redundancy. Newer codecs like H.264 provide even greater compression by using smaller block sizes, quarter pixel motion estimation, multiple reference frames, and more efficient entropy coding.