You can adjust the quality and file size by modifying the video codec (H.264 is a great standard choice) and the "Constant Quality" or "Average Bitrate" sliders. The H.265 (HEVC) codec offers better compression (smaller files for same quality) but is less compatible with older devices.
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If you want to own a digital copy that you can play across different devices, these stores are the industry standard: Google TV (formerly Google Play Movies) You can adjust the quality and file size
The MP4 (MPEG-4 Part 14) container format has become the preferred choice for digital video content for several reasons: This link or copies made by others cannot be deleted