They're 3 inches instead of the standard 5. 3-inch CDs were out for a while in 1988 too, but they didn't really take off- you can still get blank 3-inch CDs as well though.
I don't remember how many gigs are on a 3-inch DVD, but you could probably compress a movie enough to fit on one if you really wanted to. The only blanks out are single-layer, but many of the Warner discs that were out were dual-layer.
Just remembered there was also a gift card you could buy in supermarkets for some mail-order DVD deal, and it came with a 3-inch dual-layer DVD with previews on it.
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