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by MaMa 5305 days ago
Subtitles are stored as bitmaps on a DVD. That is why they are usually rather blocky, depending on the font used when mastering the DVD. http://en.wikipedia.org/wiki/DVD-Video#Subtitles

You are probably watching video files with subtitles as embedded (or separate) text files (srt etc). This allows the video player to render them with any font and higher resolution.