Interesting repurpose of a audio CD player mechanism to play back video.
The quality does not look great but by the time they came out with the color model it is actually pretty impressive.
Given this is from the early 2000s and had to be as cheep as possible while also running for a long time from AA batteries means they could not afford the processing horsepower to do proper video decompression. So it seams like they just packed raw video data into the CD audio bits. As shown in the video the discs are just normal audio CDs that play just fine in any audio CD player, except that the audio is ear raping garbage with some of the videos actual audio heard in there. Meaning that not even the audio is compressed, likely just resampled to a lower quality in order to make space for the video. For the color version they likely likley had to squeeze a bit more efficiency out of the format.
Not that this is practical or anything these days, but it is a pretty cool trick to just pack video data straight into audio, then decode it back real time using underpowered and cheap electronics.
The insides of it can be seen here:
https://forum.videohelp.com/threads/371489-Ripping-and-Converting-VideoNow-Discs