Divx dust-up looms
By Stephanie Miles
Staff Writer, CNET NEWS.COM
April 30, 1998, 4:15 p.m. PT
With a new manufacturing agreement, upcoming field tests, and a massive marketing campaign about to get under way, Divx--a high-density, pay-per-view recording medium--looks more likely than ever to threaten the nascent DVD market.
This week, Digital Video Express (DVE) announced it has inked a five-year deal with Nimbus CD International to manufacture and replicate Divx discs. DVE also said it will launch customer tests this summer in San Francisco and Richmond, Virginia.
In addition, the company has invested $100 million in a marketing campaign designed to erase the negative publicity Divx has generated in its efforts to supplant DVD, analysts say. It will likely seek to clear up lingering confusion about the differences between Divx and DVD.
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