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DIVX gets plug pulled: In an announcement today that surprised everyone in the
online community, Digital Video Express (DIVX) officially closed it's doors and canceled
operations, with Circuit City posting a $114 million loss after disposal of the division.
Richard L. Sharp, chairman and CEO of Circuit City Stores, Inc., claims an inability to
obtain adequate support from move studios and other retailers for the failure of
the pay-per-view format. Current DIVX owners will have a 2-year window to continue watching
DIVX discs. Silver conversion will no longer be possible, while all current Silver-disc
owners may choose to continue watching until the window expires or may request a full refund of
the conversion price. Current DIVX player owners may also apply for a $100 cash rebate.
The ultimate irony is that this closure comes mere days after controversy erupted on the Internet
over Disney DIVX-exclusive titles such as Who Framed Roger Rabbit -- titles that will
no longer be released. The demise of DIVX will ultimately clear confusion in the digital home
video market, leaving one clear winner for all studios and consumers to support. Further information
may be obtained on the offical DIVX web site, on
ZD Net or
Reuters.
This news report was updated on May 19, 2006.
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