Video codecs have a lot of information to deal with. They look for similarities within a single frame as well as between frames, taking into account change over time. It's a combination of spatial and temporal compression.
change over time
Your editing software may have compression presets ("good for the web" or "good for CD-ROM") which may be enough for you.
However, the secret to reducing file size is lowering the data rate (the amount of information per second). Since every movie is different, it helps if you know how to fine-tune a digital flick.
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