Divx Still Excites Circuit City

Circuit City stockholdersí reports on the retailerís financial results for its fiscal year ended February 28, 1999 indicate that Circuit Cityís cumulative loss from Divx so far since startup is $89.4 million. Circuit Cityís total investment in Divx is reported to be over $200 million, which includes payments to supporting Hollywood studios, hardware manufacturers and retailers.Reportedly, the Divx feature is estimated to be included in 20 to 25 percent of all DVD-Video players sold by Circuit City during its fiscal fourth quarter, with consumers activating Divx accounts representing 50 to 90 percent of all players sold.Manufacturers supporting the Divx feature in select DVD-Video players are Panasonic, Thomson (RCA and ProScan brands) and Zenith. Harman-Kardon, JVC, Kenwood and Pioneer are slated to introduce Divx feature DVD-Video players in 1999.While Circuit City is the primary retailer for Divx retail support includes California-based Dow Stereo/Video and The Good Guys!, Denverís Ultimate Electronics, and metropolitan New Yorkís Nationwide and 6th Avenue Electronics. Canadian chain Future Shop has been one of Divxís retailing allies, but is closing its U.S.-based stores. Divx is not sold in Canada.