Divx Folds: The DVD Format That Will No Longer Play

Reportedly, Circuit City has decided to cease operations for the fledging Divx pay-per-viewing-period feature licensed to a few manufacturers and included as a feature of their DVD-Video players. The encrypted format disc will be phased out completely over the next two years. Of historical interest will be Divx discs that could become collectable. And while Divx will no longer exist, certainly the concept of pay-per-viewing-period piloted by Circuit City, which owned controlling interest, will continue to be applied to other mediums of distribution, particularly via the Internet for music and movies. Thus, while Divx has been the bane of segments of the DVD enthusiastsí market, the principle is expected to live on and be implemented elsewhere.Richard Sharp, Circuit Cityís Chairman and CEO and CEO of Divx, reportedly claims that the lack of studio and retailer support has been an insurmountable challenge to laying the foundation for the Divx format to grow. Yet Sharp insists that customer acceptance has seen continued growth. No sales figures were released during the formatís short one-year existence in the marketplace. Circuit City, a publicly held company, is expected to incur a $114 million loss directly related to the companyís interest in the Divx business.