Even though this occurs in the digital domain, it is still a lossy copy of the material. The image is the result of the compressed source processed by decompression. The resulting "movie" of frames would not have access to the compression source, only the decompressed frames. So the resulting movie would be quite large. To be portable, the movie would need to be recompressed, thereby increasing artifacts in the image. This is basically a version of the "analog hole."
Let the hive mind of Engadget get that for you.
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