2.10 What was Divx?
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This article is from the DVD Formats FAQ, by jtfrog@usa.net (Jim Taylor) with numerous contributions by others.
2.10 What was Divx?
Depending on whom you ask, Divx (once known as ZoomTV) was either an
insidious evil scheme for greedy studios to control what you see in your
own living room or an innovative approach to video rental with cheap discs
you could get almost anywhere and keep for later viewings. On June 16,
1999, less than a year after initial product trials, Digital Video Express
announced that it was closing down. Divx did not confuse or delay
development of the DVD market nearly as much as many people predicted
(including yours truly). In fact, it probably helped by stimulating
Internet rental companies to provide better services and prices, by
encouraging manufacturers to offer more free discs with player purchases,
and by motivating studios to develop rental programs.
The company is offering $100 rebate coupons to all owners of Divx players.
This actually makes the players a good deal, since they can play open DVDs
just as well as other low-end players that cost more. The Divx billing
computer will continue to operate normally until June 30th, 2001, after
which all Divx discs will presumably become unplayable. Divx discs can no
longer be upgraded to unlimited play.
Developed by Circuit City and a Hollywood law firm, Divx was supported by
Disney (Buena Vista), Twentieth Century Fox, Paramount, Universal, MGM, and
DreamWorks SKG, all of which also released discs in "open DVD" format,
since the Divx agreement was non-exclusive. Harman/Kardon, JVC, Kenwood,
Matsushita (Panasonic), Pioneer, Thomson (RCA/Proscan/GE), and Zenith
announced Divx players, though some never came to market. The studios and
hardware makers supporting Divx were given incentives in the form of
guaranteed licensing payments totaling over $110 million. Divx discs were
manufactured by Nimbus, Panasonic, and Pioneer. Circuit City lost over $114
million (after tax writeoffs) on Divx.
Divx was a pay-per-viewing-period variation of DVD. Divx discs sold for
$4.50. Once inserted into a Divx player the disc would play normally
(allowing the viewer to pause, rewind, even put in another disc before
finishing the first disc) for the next 48 hours, after which the "owner"
had to pay $3.25 to unlock it for another 48 hours. A Divx DVD player,
which cost about $100 more than a regular player, had to be hooked up to a
phone line so it could call an 800 number for about 20 seconds during the
night once each month to upload billing information. Most Divx discs could
be converted to DivxSilver status by paying an additional fee (usually $20)
to allow unlimited plays on a single account (as of Dec 1998, 85% of Divx
discs were convertible). Unlimited-playback DivxGold discs were announced
but never produced. Divx players can also play regular DVD discs, but Divx
discs do not play in standard DVD players. Divx discs are serialized (with
a barcode in the standard Burst Cutting Area) and in addition to normal DVD
copy protection (see 1.11) they employ watermarking of the video, modified
channel modulation, and triple DES encryption (three 56-bit keys) of serial
communications. Divx technology never worked on PCs, which undoubtedly
contributed to its demise. Because of the DES encryption, Divx technology
may not have been allowed outside the U.S.
Divx was originally announced for Summer 1998 release. Limited trials began
June 8, 1998 in San Francisco, CA and Richmond, VA. The only available
player was from Zenith (which at the time was in Chapter 11 bankruptcy),
and the promised 150 movies had dwindled to 14. The limited nationwide
rollout (with one Zenith player model and 150 movies in 190 stores) began
on September 25, 1998. By the end of 1998 about 87,000 Divx players (from
four models available) and 535,000 Divx discs were sold (from about 300
titles available). The company apparently counted the five discs bundled
with each player, which means only 100,000 additional discs were sold. By
March 1999, 420 Divx titles were available (compared to over 3,500 open DVD
titles).
Advantages of Divx:
* Viewing could be delayed, unlike rentals.
* Discs need not be returned. No late fees.
* You could watch the movie again for a small fee. Initial cost of
"owning" a disc was reduced.
* Discs could be unlocked for unlimited viewing (Divx Silver), an
inexpensive way to preview before deciding to purchase.
* The disc is new; no damage from previous renters.
* The "rental" market was opened up to other retailers, including mail
order.
* Studios got more control over the use of their content.
* You received special offers from studios in your Divx mailbox.
Disadvantages of Divx :
* Higher player cost (about $100 more).
* Although discs did not have to be returned, the viewer still had to go
to the effort of purchasing the disc. Cable/satellite pay per view is
more convenient.
* Higher cost than for regular DVD rental ($4 to $7 vs. $2 to $3). There
were few obstacles to the company raising prices later, since it had a
monopoly.
* Casual quick viewing (looking for a name in the credits, playing a
favorite scene, watching supplements) required paying a fee.
* All Divx titles were pan & scan (see 3.5) without extras such as
foreign language tracks, subtitles, biographies, trailers, and
commentaries.
* The player had to be hooked to your phone line, possibly requiring a
new jack in your living room or a phone extension cable strung across
it.
* If your phone line were down for a long period of time, you might not
be able to watch Divx discs.
* The Divx central computer collected information about your viewing
habits, as do cable/satellite pay-per-view services and large rental
chains. (According to Divx, the law did not allow them to use the
information for resale and marketing.)
* Divx players included a "mailbox" for companies to send you
unsolicited offers (i.e., spam).
* Those who didn't lock out their Divx player could receive unexpected
bills when their kids or visitors played Divx discs.
* Divx discs wouldn't play in regular DVD players or on PCs with DVD-ROM
drives. Some uninformed consumers bought Divx discs only to find they
wouldn't play in their non-Divx player.
* Unlocked Silver discs would only work in players on the same account.
Playback in a friend's Divx player would incur a charge. (Gold discs,
which were never released, would have played without charge in all
Divx players.)
* Divx couldn't be used in mobile environments, such as a van or RV.
* There was no market for used Divx discs.
* Divx discs are unplayable after June 2001.
* Divx players were never available outside the U.S. and Canada.
For more information, see the Anti Divx page at
<http://www.dvdresource.com/divx>.
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