DIVX

DIVX

DIVX logo

DIVX is a now-defunct digital video format and DVD rental system that was introduced by the American electronics retailer Circuit City in 1998. It was designed as an alternative to traditional DVD rentals, offering a pay-per-view model that allowed customers to rent movies for a limited viewing period. DIVX was initially met with mixed reactions and faced significant challenges, ultimately leading to its demise in 1999.

History

DIVX was launched in the United States on September 25, 1998, with the aim of revolutionizing the home video rental market. The format was developed by Circuit City in collaboration with the entertainment law firm Ziffren, Brittenham, Branca, and Fischer, and the technology company Digital Video Express (DIVX). The system required a specialized DIVX player, which was available for purchase or lease from Circuit City stores.

Technology

DIVX utilized a proprietary compression algorithm to encode video content, allowing for high-quality playback on compatible devices. The format also incorporated digital rights management (DRM) technology, which restricted the viewing period of rented movies. DIVX discs were manufactured with a unique barcode that contained information about the rental period and viewing restrictions.

Rental Model

Unlike traditional DVD rentals, DIVX employed a pay-per-view model. Customers could purchase a DIVX disc for a lower price than a standard DVD, but they were required to pay an additional fee for each viewing. The rental period typically lasted for 48 hours, after which the disc would become unplayable unless the customer paid an extension fee. This model aimed to provide convenience and flexibility to consumers, allowing them to watch movies at their own pace.

Reception and Demise

DIVX faced significant challenges from the start. The format was met with skepticism from consumers who were accustomed to the traditional DVD rental model. The requirement of a specialized DIVX player also limited its compatibility with existing DVD players, further hindering its adoption. Additionally, the pay-per-view model was seen as a barrier to entry for many potential customers.

Despite efforts to promote DIVX, including partnerships with major movie studios and discounts on player prices, the format failed to gain widespread acceptance. Circuit City announced the discontinuation of DIVX on June 16, 1999, just nine months after its launch. The decision was primarily driven by poor sales and mounting financial losses.

Legacy

Although DIVX was ultimately unsuccessful, it played a role in shaping the home video rental industry. The format's pay-per-view model and digital rights management technology foreshadowed the rise of digital streaming services and the decline of physical media rentals. Lessons learned from the DIVX experiment also influenced the development of subsequent video-on-demand platforms.

See Also

• DVD
• Digital Rights Management
• Streaming Services