Video compression query


I saw this YouTube video that explains Articulate's video compression capability.  At the 5 minute mark the presenter says Articulate can take a 3.14 and compress it to a 1.2MB.mp4.

Two questions from this if I may:

1. what steps are required to achieve this compression and

2.  is this compression to good to be true?  :) ;)

Thank you  :)

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