Terry, Great story on Divx. Too bad there is no mention that Zenith has the exclusive/worldwide, early manufacturing (LGE) and distribution rights to Divx DVD players.
Divx will bring about a major paradigm shift allowing the studios (including the smallest art and adult studios all the way to Disney and Paramount) to directly distribute their products to consumers on a global basis.
Here is how it'll work: First comes the Divx player, a full blown DVD player capable of showing 16:9 and 4:3 screen ratio, high-definiation digital video and full Dolby Surround-Sound audio. Initial Divx players are expected to be priced at about $699 with selected Zenith dealers selling them this Spring (at the same time Zenith HDTV and SDTV sets will be introduced along with optional NCTV players).
Divx players will be capable of displaying all current DVD disks, however, only Divx players will be capable of displaying Divx disks.
Initially, Divx disks will cost an average of $4.50 for a first-run movie (Disney, Paramount, Dream Works, etc.) and can only be purchased at Zenith dealers including Circuit City (one of the Divx owners). The advantage over renting a Divx disk versus renting a VHS tape at $3.50 a pop is that the audio and visual quality is much higher on the Divx disk and you don't have to return it. Just view it and throw it away or keep it and view it later at about a nominal charge.
The next stage is where it gets real interesting. Once Divx builds up a large base of owners, it could sell its owner list (including buyer demographics/past purchasing patterns) to film companies. Studios thus will gain, for the first time, a direct distribution channel for their products, (bypassing but not ignoring current distributors such as Blockbuster and the cinema chains).
For example, Disney could purchase the entire list and send out a free demo disk to every Divx owner. The demo could include previews of 20 Disney films and list their 800 number/web site to order the ones you want and also include the latest Disney movie on the disk which only could be activated by dialing the Divx 800 number.
Studios could also send out disks prior to actual cinema release and make them first playable on the actual date of theater release or even offer a limited amount on a "sneak preview" basis to garner audience reactions prior to theater release.
Divx plans on making this a worldwide product including providing separate models to meet the competing European and Japanese TV standards.
For Zenith to be selected as the first distributor of Divx is big. "Best of the Breed" partners in action....... |
