Why is video compression necessary for digital signals?

Video compression is essential for digital signals primarily because it reduces the data rates required for practical distribution. Digital video files are often very large, which can create challenges when transmitting over networks or delivering content to users. By compressing the video, the amount of bandwidth needed for streaming or downloading is significantly decreased. This reduction in data size allows for smoother playback, more efficient storage, and the ability to transmit high-quality video over restricted bandwidth connections, making it feasible for a variety of platforms, such as streaming services, broadcast television, and online video sharing.

The other choices, while they may touch on aspects related to video quality or processing, do not directly address the fundamental need for compression in terms of data size and transmission efficiency. Enhancements in picture quality or color vibrancy, as well as faster processing times, are not primary motivations behind the use of compression, but rather potential benefits that can arise from effective compression techniques.