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Yes, all of your security footage will be automatically compressed using H.264(or H.265) Advanced Video Coding (AVC). This will save you massive amounts of data and extend your recording times, without losing any noticeable quality in the footage. There is a big difference between the way analog and IP systems will compress footage, however.
In analog systems, the video is compressed in the DVR while IP cameras will compress the data themselves before sending the data to the NVR. It is important to note that our some NVRs also comes equipped to handle H.265/H.265+ High Efficiency Video Coding (HEVC).