The makers of Divx, a rentable DVD system, have announced that they will discontinue operations.
Digital Video Express LP, which is partially owned by Circuit City Stores Inc., said that sales of the systems aren’t the problem. “We have been unable to obtain adequate support from studios and other retailers,” a spokesperson said.
The Divx format required users buy Divx disks for about the price of a video rental. Consumers were able to watch the disks an unlimited amount of times for the first 48 hours. After that, they were be charged for additional viewings.
Divx was supposed to eliminate the problem of returns and late fees for consumers, while allowing content creators to protect their rights.
But some consumers were put off, or just perplexed by the idea that they would have to keep paying for something they had already purchased.
Once companies, including Blockbuster, announced plans to rent DVDs to consumers instead of Divx discs, the standard’s fate appeared to be sealed.
Divx officials say consumers who purchased Divx-enhanced players before June 16 will be eligible for a $100 rebate, and all Divx discs can be viewed between now and June 30, 2001.
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