Video compression query

Hello,

I saw this YouTube video https://www.youtube.com/watch?v=W0aNbg_s5WA that explains Articulate's video compression capability.  At the 5 minute mark the presenter says Articulate can take a 3.14 GB.mov 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  :)