Divx, What's the chances that they really launch on time????????????
onlineinc.com
Divx: Studio Push or Consumer Pull?
Since the initial Divx announcement on September 8 by Digital Video Express, LP--a partnership between Circuit City Stores, Inc. and Ziffren, Brittenham, Branca & Fischer, a Los Angeles-based entertainment law firm--DVD enthusiasts, film studios, consumer electronics manufacturers and distributors, journalists, and industry analysts have been vocal in their acceptance or criticism of the new technology. Some DVD enthusiasts are so enraged by the anticipated release of Divx-equipped players and hundreds of movie titles in 1998 that they have created a Web site--The Anti-Divx Page (http://www.dvdresource.com/divx)--to vent their frustrations.
Those in favor of Divx have proven equally outspoken. Among Divx's higher-profile supporters are motion picture studios Disney, Paramount, Universal, and DreamWorks SKG--all of whom will be releasing Divx-encoded movie titles on DVD--and manufacturers Zenith Corporation, Thomson Consumer Electronics, and Matsushita Electric, who will manufacture DVD players with the new Divx capability.
Born from a need for copyright protection through encryption, Divx is simple and convenient, its supporters say. According to Digital Video Express, the new Divx system for DVD players "will provide significant copyright protection for movies released on Divx digital discs and unparalleled consumer convenience for in-home movie viewing."
Divx will incorporate safeguards against movie copying and piracy that include individual serialization of players and discs, triple DES encryption, watermarking, and analog copy prevention, while still allowing consumers to view their favorite movies in MPEG-2-quality digital format. "It's good for retail and great for the consumer--a win-win proposition," says Jeffrey Katzenberg, principal of DreamWorks SKG.
The Divx player itself will look like a standard DVD player and will plug into a standard telephone jack. Early specifications about the new technology promise that Divx players "will never interfere with the consumer's phone usage" and will only call Divx processing centers to submit billing information during "off hours" when the player and telephone are not in use.
Developers note that the Divx system operates much like current VHS movie rentals, but without the typical late fees. For $4.99 or less, consumers will be able to purchase an encrypted movie disc that looks and operates like a standard audio CD. The purchase price of the movie disc--which is expected to sell for much less through some retailers--includes a two-day viewing period that begins only when the consumer inserts the disc into the Divx player and pushes the "Play" button.
Once the Divx disc is inserted into a Divx player for viewing, the consumer has unlimited access to the disc for 48 hours. At the end of that period, the consumer may purchase additional viewing periods through the Divx player at an approximate cost of $3 per two-day period, store the disc for later viewing (and later charges), or simply throw it away. Some titles will also be designed to allow unlimited viewing, at a one-time conversion cost of around $15 or $20.
Particularly troublesome to those opposed to Divx is the fact that lower-cost Divx discs won't run on the estimated 150,000 DVD players already in use, although Divx players will play DVD discs and audio CDs, as well as Divx discs. Some early DVD converts--who may already feel they took a risk by embracing DVD when it first hit the market--are concerned that inexpensive Divx titles will slow the release of DVD titles and, more importantly, that their DVD equipment will become obsolete if the market accepts Divx and its purported benefits to consumers, retailers, and the studios themselves.
Despite the multi-year commitments to Divx by four of Hollywood's major studios--as well as Zenith, Thomson, and Matsushita--some industry insiders are holding back. Both Sony and Toshiba have been reluctant to incorporate Divx technology into their DVD product lines. Says Toshiba Marketing Vice President Steve Nickerson, "We haven't seen any materials that say this is something consumers want. If you can't attract early adopters, it's not a viable concept. They have to embrace it if there's any chance for mass market acceptance."
Still, Divx has created a furor in the digital video market and, more noticeably, on the Internet. The debut of Divx players at next month's Consumer Electronics Show--to be held January 8-11 in Las Vegas, Nevada--and the release of Divx titles in late spring or early summer 1998 will prove or disprove the value of Divx to this increasingly influential market.
(Digital Video Express, LP; divx.com)
--Marla Misek |
