SDR content uses generally 24 bits of information to represent the brightness and color of each pixel (8 bits each for red, green, and blue sub pixels). HDR allocates more bits (30 or 32 bits per pixel, for HDR10 and Dolby Vision) allowing for more distinct brightness and color values to be represented. This means you have enough info to encode a wider dynamic range (difference between the brightest white and pure black) without losing out on subtle differences between colors and shades.
TLDR: HDR content on an HDR TV can have really bright scenes and really dark scenes, without either getting washed out
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