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Transfer Unbox Videos

I notice that when I plug my SGV, one of the options is "Transfer video files to this device" using Amazon Unbox Video. 1. Does this work and 2. does it eat storage space? I doubt it would compress the file, but curious if anyone has tried it. I currently have season 1 of The Walking Dead on my SD card for those times when the power is out or bored up and deer camp. Adding more vids would be a nice option.
 

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