What's up With DIVX

DIVX (Digital Video Express). Before it became a pirate's paradise it was supposed to be Circuit City's new Enterprise!

Warning: this article is just a history lesson on the name DIVX - it in no way is meant to reflect a business connection between the Circuit CIty enterprise and the modern compression method - except for the modern and ironic use of such a strange word ... DIVX.

 

Back in the 20th century - way before Jack Van Impe and the other whackos were made to look foolish over a non-Armageddon Y2K - the DVD video and audio format DIVX made its debut. DIVX began life as the odd child of a major electronics chain and its legal gurus: a surprising coupling. It wasn't the match that was surprising, mind you, but rather that such a tandem could produce a compression format this popular.

 

 

How? Why? Profit, where?

DIVX showed potential because it was one of the earliest examples of Digital Rights Management, or DRM. While many Apple iPod, Sony Walkman, and SanDisk Sansa owners are more than familiar with annoying DRM rules now, before the turn of the millennium the rules were generally unheard of. DIVX allowed consumers to watch a movie as often as they wanted to for a mere four and a half bucks - so long as they did it before the 48-hour deadline. At that point, the disc expired and the contents were no longer viewable. Consumers were at one time given the option of extending their viewing period for a few extra dollars.

 

Call it the Cinderella CD/DVD or whatever you like, Circuit City certainly could have gone somewhere with the idea. Clearly, we all know the massive red retailer had the funds to back such a project.

 

The problem?

In '99, DIVX DVD players were fairly rare, and for the rental scheme to work, people needed to invest in the necessary hardware. That's tough: imagine Blockbuster asking customers for $150 (consider the time period) just to watch a movie they're clearly not even willing to buy.

 

There were other problems, as well. For instance, consumers needed to place the hardware near a phone jack so that they could connect the DIVX device to an online account. This was mandatory before being granted the ability to even watch the disc.

 

Why did Circuit City even try this shtick?

It makes sense for the retailer. Sell the consumer a premium-priced DIVX player, work your way into the very lucrative video rental market, and establish a network that keeps users coming back over and over to the Circuit City name.

 

However, a plan that works this well for the retailer rarely translates without a few problems for consumers. In a way, it's kind of like dropping Japanese text in a literal, automated online English translator. Yeah, give it a try. It doesn't really work.

 

So, where did DIVX go?

DIVX certainly didn't die when Circuit City -- or its lawyers -- gave up the fight. Instead, the name has been resurrected for a bare-bones quality codec. No, we don't mean to suggest that DivX the codec is the same as DIVX of Circuit City fame... before you leave comments!

6 comments
Posted by Brando on August 2,2007 at 7:13 AM

It's cool Chris, DWB.

I was mostly making fun of the name when I brought up it being ressurected - the warning should alay any confusion.

I like the spoof. The codec is allright, but the CC enterprise is a little known "lesson learned" in consumer electronics

Posted by Chris on August 1,2007 at 10:50 PM

I didn't mean to seem sensitive about it, but I have seen a lot of people confuse the two DivX names before and the way that I read the last part of your article it seemed that you had confused them.

Though I will say that this article is quite well written and I hope to read more from you in the future.

Posted by Brando on August 1,2007 at 8:57 PM

I love it mewho, thanks.

I dug up the info on OLD DIVX and thought it was worth remembering. Not that it has any connection to the codec, it's just funny they have the same (rediculous) name.... thanks for clearing the air.

God, some people get SOOO sensitive about that topic.

Posted by mewho on August 1,2007 at 8:53 PM

Just to clear things up (a little more), DivX, Inc. named itself such in a spoofish homage to the deceased Circuit City technology but the video codecs and other technologies created by DivX, Inc. neither bore nor bear any similarity (beyond that they relate to video), resemblance or official connection to the original Circuit City DIVX brand.

Posted by Brando on August 1,2007 at 5:47 PM

As a matter of fact...

I added a warning edit just so there would be NO CONFUSION!!

Posted by Chris on August 1,2007 at 5:30 PM

I'm sorry but did you even read the beginning part of the article you linked to?  It clearly states that:

"NOTE - THE FOLLOWING ARTICLE DISCUSSES THE CONTROVERSY OVER THE DIVX DVD FORMAT ORGINALLY CONCEIVED OF IN 1997 BY CIRCUIT CITY AND DOES NOT REFER TO THE CURRENT DIVX VIDEO CODEC NOW IN USE FOR INTERNET VIDEO APPLICATIONS."

Yes the old DIVX disk format is in no way related to the DivX video codec.  I'm sorry but you really need to get facts straight before posting about it, this is how misinformation gets started.