They do take up a lot of space, and just today I asked in photo.stackexchange for backup compression techniques that can exploit inter-image similarities: https://photo.stackexchange.com/questions/132609/backup-comp...
Unfortunately lossless video compression won't help here as it will compress frames individually for lossless.
Iirc it was Bzip2 that bumped that up to 1MB, and there are now compressors with larger windows - but files have also grown, it’s not a solved problem for compression utilities.
It is solved for backup - but, reatic, and a few others will do that across a backup set with no “window size” limit.
…. And all of that is only true for lossless, which does not include images or video.
Could it be possible that jpg also exploits the repetition at the wavelength of the width of a single picture, so to say? E.g. 4 pictures side-by-side with the same black dot in the center, can all 4 dots be encoded with a single sine wave (simplifying a lot here..) that has peaks at each dot?