[AV Media Matters] New Obsolete Format - Divx is dead

[Jim Lindner <jim@vidipax.com>]

This happened a couple of days ago - I am sure some of you have already
heard - but DIVX is DEAD.  Now I personally am quite happy about this -
it was bad enough that DVD had major standards issues (and still does)
but DIVX really stalled and confused the market .  Now perhaps DVD will
have a bit more of a chance for success - but the key for DVD will
certainly be DVD-R or DVD-RW or DVD-RAM - pick one -  which is still a
bit of a problem at the moment .... you get the idea.... a DVD that
RECORDS!!

I caught this on another list - I believe it is a press release but I am
not sure.
jim

DIGITAL VIDEO EXPRESS CALLS IT QUITS

Digital Video Express will cease marketing of the Divx home video system
and
discontinue operations.

"Sales at participating Divx retailers reflect strong consumer interest
in
the Divx feature," said Richard L. Sharp, chairman and chief executive
officer of Digital Video Express and of Circuit City Stores, the
majority
partner in the Digital Video Express venture. "The majority of customers
purchasing DVD players in Circuit City stores have selected players that
include the Divx option. Unfortunately, we have been unable to obtain
adequate support from studios and other retailers. Despite the
significant
consumer enthusiasm, we cannot create a viable business without support
in
these essential areas."

Digital Video Express will provide a $100 cash rebate to all consumers
who
purchased Divx-enhanced players prior to June 16, 1999. Rebate forms
will be
available at www.divx.com, participating retailers and by calling
1-888-639-DIVX. The rebate will ensure that no Divx customers have paid
more
for the Divx-featured player than they would have paid for the least
expensive, comparable DVD player available at the time of their
purchase.
All Divx-featured DVD players are fully functional DVD players and will
continue to operate as such. All Divx discs, including those previously
purchased by consumers and those remaining in retailer inventories, can
be
viewed on registered players anytime between now and June 30, 2001.
Subsequent viewings also will be available during that period. Discs can
no
longer be upgraded to unlimited viewing, known as Divx Silver. Customers
who
have converted discs to Divx Silver can continue viewing the discs until
June 30, 2001, or can receive a full refund of the conversion price at
their
request. Divx expects to provide registered owners with written
notification
of the details related to the system phase-out. Effective today, Divx
will
no longer register new customers.

Circuit City Stores is incurring an after-tax loss of $114.0 million
related
to the disposal of the Divx business. The loss includes provisions for
commitments under licensing agreements with motion picture distributors,
the
write down of assets to net realizable value, lease termination cost,
employee severance and benefit cost and other contractual commitments.