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It has to do with the number of horizontal pixels across the screen. 720 has 1280 amd 1080 has 1920. A pixel is like a micro color image so more pixels the better the picture clarity It makes a significant difference on displays over 46 inches since the screen itself is allowing more space between pixel. On a 32 inch you really can't tell a visual difference (the % difference at that size is nearly undetectable by the human eye)
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