^Maybe this is too basic, but I'll explain it anyway. Typical color displays use three separate subpixels (I think that's the right word) very close to each other, one each of red, green, and blue, to make up each pixel. You can see the subpixels if you look very close at your LCD display. Each subpixel is capable of displaying only one that one color, but at many different levels (256 different levels if you're using 24-bit color). The color we see is simply the combination of those three. You can play with these colors and see how they combine to make the colors we see if you open a program where you can choose a color for drawing or font color and go into where you choose the color. Even you display properties where you choose a desktop color will work. Go in there and you'll see three boxes labeled R, G, B, or red, green, blue. Change those values and you can see how they combine to make different colors. The colors you see in your display are simply those values expressed by the three different subpixels in your display.
This technology demonstrated above, as I understand it anyway, doesn't use three different subpixels to display color. Instead, each pixel is capable of displaying all three colors (don't ask me how, I have no idea). It displays each color in rapid succession instead of in subpixels next to each other. I can see how that might be better, but I would have to see it to decide for sure. Of course, seeing it here doesn't really work because I'm watching a simulation on a normal LCD, so I can't really tell how well it would work in practice.