Going to VHS sucks a lot of quality out of the picture. Among other things, "color resolution" becomes limited to about 40 color changes across the screen, even for S-VHS and Hi-8 analog.
Whether you are converting to VHS or DVD, starting from movie film requires the telecine machine, which indeed scans every single film frame.
If you did convert the film to VHS, should you convert that VHS tape to DVD you will encounter the same aforementionedcompression.
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