Earlier quoted context omitted.
I love subtitles, but for me they tend to spoil the timing of the lines being delivered, especially with comedy. Unfortunately subtitles are necessary even when I'm able to play audio as loud as I want, because it's almost always hard to understand at least 10-20% of the words that actors are saying. Maybe it would be nice to have subtitles that appear a word at a time as they are spoken, but I imagine that's not ver…
I would also love to a more responsive subtitle format! I've seen some really wonderful custom jobs where people use different subtitle colors for different speakers, place subtitles near the speaker in the frame, etc. I think there is a ton of room for improving the expressiveness of the medium.
https://youtu.be/R3shsgKbd_M?t=12s
That's a pure text format; no bitmaps involved, just markup and TTF fonts. It can do vector shapes and perspective positioning. These are somewhat overdone examples, but one more common nice use case is literally translating signs on buildings, objects and such, seamlessly, while preserving the image style. The whole thing is rendered in real time and you can toggle the subs off and see the original frame.
Again, that's all markup rendered on the video in real time from fonts. Yes, really.
It is the standard in the anime fansub community, but has seen little adoption elsewhere. Partially this is because it seems commercial operations rarely have much interest in subtitle quality or technology.
Incidentally, even YouTube supports an undocumented subtitle format that can support a decent amount of styling (YTT). Unfortunately, support is inconsistent across web/mobile versions, and it looks best when viewed in a browser. I've used it to do things like this (turn on captions):
https://www.youtube.com/watch?v=dh1BCyjCbes
https://www.youtube.com/watch?v=IxLI7KmzOjE
You can convert a subset of ASS to that format with this tool: https://github.com/arcusmaximus/YTSubConverter