CDTV was not able to play movies such as vcd. Video CD were thought ot replace vhs as a medium of choice. It never gained much traction outside of Asia.
It wasn't until CD32 that commodore made a MPEG playback add on cartridge that worked quite well. A few games had fmv, the demo cd's had fmv and it played all my video cd discs such as adult, and asian action moviesm in addition to the philips cdi video cd's released in the usa.
CDTV video was relegated to CDXL video which was ham 4096 color video played uncompressed off the cd. It was never full screen and used reasonabl in well in Sherlock Holmes for CDTV. That was actually a decent fmv game for the time.
For big box amigas there was the peggy+ mpeg card I received with a scala a4000t. quite nice card that had similar funcionality as the cd32 mepg cart but it was designed to work with scala.
