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To: Paul Lee who wrote (18363)	5/6/1999 8:26:00 AM
From: Moonray	Respond to of 25814

Divx activity reduced [Kjeller, May 2, 1999] Since the launch of their proprietary video format Divx Circuit City has been fighting an uphill battle on all fronts. They are having problems with studio support, few hardware manufacturers, few retailers, negative press and consumers unwilling to use the Divx feature on the subsidized DVD/Divx players. Just a few studios have been willing to make some of their titles available on the format. One of those studios, Paramount, is not making their Divx titles available for "Silver conversion" that would give the user an extended viewing period on his own Divx player. This may have been an precaution to avoid class action lawsuits when the Divx format is discontinued. Disney that before seemed more positive than any other studio about the Divx format has now increased their support of the competing format DVD. Their title "A Bug's Life" set new sales records when released on DVD in April. Disney has not yet released any animation titles on Divx and with the current situation of the format no releases are planned. When first making their commitment Circuit City intended to spend 30 million dollars to get the Divx format started. After having spent somewhere between 200 and 500 million dollars and after desperately searching an investor the activity of Digital Video Express has now been reduced. In April there were only 24 titles released on Divx and for May only 8 titles have been announced. On a non updated webpage used to attract new Divx retailers promises about over 30 new titles each month and new releases every week are still being made. Both promises have been broken lately. When the Divx format was first made commercially avilable in June 1998 the plan was to release 50 new titles each month. The major problem Circuit City has with Divx now seems to be how to get rid of the failing format without spending even more money. o~~~ O