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Open DVD verses DIVX
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This is currently one of the hottest debates on the Internet, but it is noticeably absent from SI. The following cnet.com article is a good summary of what all the commotion is all about. Please add your comments either pro-DIVX or anti-DIVX to the thread.

DIVX - New Convenience or Digital Disaster

Silicon Valley represents the cutting edge of technology. San Franciscans are known for their open-mindedness and willingness to try new things. Perhaps that's why the Bay Area is one of two test markets for a new video playback technology, Divx. For the last month, consumers in the Bay Area and Richmond, Virginia, have been inundated with TV and radio commercials touting Divx, which went on sale here June 8.

At the same time, the buzz about Divx on the Internet and in consumer electronics publications has been largely negative. Since the technology was first announced last September, several Web campaigns to ban Divx have sprung up, and videophiles have slammed it as an evil moneymaking scheme (and worse) on newsgroup postings.

So what is it? Where did it come from? Is it worth getting up in arms about? Before the hubbub gets any louder with the planned nationwide launch of Divx later this summer (and concurrent $100 million advertising campaign), CNET.com delivers the promise, the problems, and our take in regard to Divx.

THE PROMISE

Do you have a three-foot stack of blue and yellow videocassette boxes lying on your stereo? Have you ever been so late in returning a videotape that the clerk looks at the late fees and says, "Oh, just keep it?"

Digital video express (Divx) attempts to relieve these burdens with an automatic--some say intrusive--pay-as-you-go billing system.

The discs themselves are simplified video digital versatile discs (DVDs). Adherents claim that the digital format offers superior picture and sound reproduction compared with VHS cassettes. Regular DVDs can also store several hours of audio and video, with room left over for extras like subtitles, interviews, and wide-screen versions of the movie.

Each Divx disc costs less than $5, compared with about $20 for a DVD. When you insert the disc into a "Divx-enhanced" player (which can read regular DVDs, as well) and press Play, an internal clock begins ticking. You have 48 hours to watch the disc as many times as you want, after which you can throw it away, use it as a coaster, or collect a bunch of them to fashion into a charming high-tech art deco sculpture. No return, no late fees.

Play it again, Sam

Want to watch the movie again after the 48 hours are up? Put it back in the machine, and an onscreen prompt will ask if you want to pay an extra $3.25 for the privilege. Or, for around $15, you can upgrade the disc to a permanent Silver Disc, and watch it any time from then on. There will also eventually be $20 Gold Discs, which will come without any initial viewing period.

Every Divx player contains a phone jack and a simple modem; billing information is transferred directly to a central office in a single, late-night phone call once each month. If you leave the phone jack unplugged for too long, you'll receive a series of gentle onscreen reminders, and eventually your Divx player will shut down until you plug the phone jack back in. Onscreen prompts alert you to the various upgrade options and charges, and parents can set controls so their kids don't watch every Divx disc in their collection, running up hundreds of dollars in charges.

In effect, Divx is on-demand video (which was supposed to be one of the "killer apps" in the interactive TV trials of the early '90s) combined with the digital video formatting of DVD.

THE PROBLEM

There are actually several problems with Divx technology as it currently stands.

Although Divx discs are digital like DVDs, at this time none of them contain any of the extra material that most DVDs contain, such as subtitles, dubbed versions, or supplementary interviews. Many videophiles also like the option of watching movies in their original wide-screen format, which isn't an option with Divx discs.

In other words, the only "enhancement" offered by Divx at this time is the convenience of not having to make the second trip to the video store to return the disc.

The Zenith DVX 2100 is the first Divx player available. More models will be released later this summer.

The $100 or so extra that you'll pay for a "Divx-enhanced player" (compared with a regular DVD player) makes this a costly convenience. In fact, the whole pricing scheme doesn't make much economic sense. Calls to a San Francisco Blockbuster revealed that you can rent a regular DVD for $2.16 for five nights--that's less money and a longer viewing period than the Divx standard. Of course, the Divx viewing period doesn't start until you hit Play. But who rents movies that they don't intend to watch in the next couple of days?

"What we have here is a failure to communicate."

But here's the real problem: if you buy a Divx disc and play it in your machine, then lend it to a friend, the friend will be charged a brand-new fee. Even if you decide you really love 12 Monkeys and want to upgrade your Divx disc to permanent Silver status, it still won't play in your friends' machines!

Divx is of questionable value to renters, but it's completely pointless for people who love to collect movies. Why spend $20 on a Divx disc that contains no enhancements and can be played on only your machine when you can spend $20 on a DVD with all the bonuses and own it outright?

The consumer electronics and entertainment industries worked hard to wrangle together a standard for DVD, trying to avoid a competing-standards war like the one that doomed Betamax. When Divx was announced last fall, some of the companies who weren't involved complained that the new format would confuse consumers and prevent them from buying DVD players--undercutting the standards that had been set. The timing of the announcement--right before the first Christmas buying season for DVD players--was also unfortunate.

"I'm mad as hell, and I'm not gonna take it anymore!"

Early DVD adopters were also angry, fearing that this splinter technology would make their brand-new machines obsolete. As more companies begin to release movies on Divx (at this time only Disney, Paramount, Universal, Twentieth Century Fox, MGM, and DreamWorks are signed up), DVD releases might dry up. After all, studios would probably rather make a few pennies each time you play a movie than a few bucks when you buy it.

The problem continues

In addition to lambasting the billing scheme, critics have asked other questions, some tinged with conspiracy-theory paranoia. Will the Divx player eventually download ads to display before each movie? Will the company be able to disable your player through the modem if you're late paying the bill? Will electronics stores pressure companies that have refused to manufacture Divx players, such as Sony and Toshiba, by refusing to carry their DVD players?

"Have you ever jacked in? Have you ever wire-tripped?"

As with any new technology, there's a possibility that some retailers won't carry Divx. Video-rental outlets in particular have reason to balk, since Divx threatens to cut off two of their major sources of income: late fees and spur-of-the-moment rentals by consumers coming into the store to return last night's movie. Why should video-rental stores take up valuable shelf space on something that's going to eat into their revenues?

To check the current state of affairs, we called around to Bay Area stores, including Blockbuster Video, Tower Video, and the online store Reel.com (based in Berkeley). None had heard of any plans to sell Divx discs, although that will probably change later this summer. The Divx group may also have some trouble getting retail stores to stock the players. For example, Sears Roebuck recently refused to carry them.

In contrast, all three of the rental chains mentioned above have DVDs available for rent or sale in at least some branches, and nearly every large home electronics store worth its salt offers DVD players.

Our take

Most of the time, we get excited about new technologies. But this one leaves us lukewarm.

As it stands right now, Divx looks like a technology designed to enhance entertainment companies' bottom lines, not the consumer's experience. The billing system is neither convenient nor economical, and the discs don't contain the extra functions that make DVD a stand out. Worse, running over to a friend's house with a movie under your arm won't work with Divx, as billing is based on the viewer's locale.

He chose...poorly

Video-on-demand, while intriguing in concept, is still striving to find a workable format. Divx shares many of the same problems. If you're planning on upgrading to a digital video system, DVD offers the same picture, without the headaches.

And don't forget to return those rentals!
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ReplyMessage PreviewFromRecsPosted
20DivX and Realtek Announce First DivX Plus(TM) HD Certified Chip for Multimedia SJakeStraw-5/24/2010
19DivX, Inc. Reports Fourth Quarter and Fiscal Year 2009 Financial Results financeJakeStraw-3/4/2010
18DivX Launches New Internet TV Platform to Redefine the Future of Entertainment fJakeStraw-1/6/2010
17DivX Announces Licensing Agreement with Motorola for DivX Certified(R) IPTV Set-JakeStraw-9/14/2009
16DivX Signs License Agreement With Panasonic for Next-Generation DivX Plus(TM) HDJakeStraw-9/10/2009
15DivX Announces Licensing Agreement with AMD to Allow Support of DivX Video with JakeStraw-1/16/2008
14LG Electronics Launches its First DivX Certified Television biz.yahoo.com FridayJakeStraw-8/31/2007
13DivX Expands Consumer Digital Media Offering; Launches Mobile Program to Power HJakeStraw-8/31/2007
12Accedo and DivX Partner to Offer Gaming Services on the DivX Connected Platform JakeStraw-8/31/2007
11DivX Certified Samsung Handset Now Available to Worldwide Consumers biz.yahoo.coJakeStraw-8/31/2007
10D-Link and DivX Sign Agreement to Release First DivX Connected Device biz.yahoo.JakeStraw-8/31/2007
9DivX Acquires Technology for Enhanced Video Search and Discovery Services biz.yaJakeStraw-8/23/2007
8DivX, Inc. Certifies STMicroelectronics' STi710x Family biz.yahoo.com TuesdaJakeStraw-5/22/2007
7DivX watches HDTV as its compression technology expands As its video compressioJakeStraw-12/18/2006
6 So what happens to your paid-for DIVX titles when you buy a new player ? ActuaDinesh-7/23/1998
5 Alex, Two good resources are user17.promise.com and thedigitalbits.com TheIPOJunkie-7/23/1998
4 Steve, The big loser will naturally be Circuit City. They are literally pouringIPOJunkie-7/23/1998
3 So how do we send the message to the studios that we want to own 1)Star Trek 2Jacques Chitte-7/22/1998
2 VLSI's one, though I wouldn't short it based on that alone. I also wouKevin Hay-7/22/1998
1 Can anyone give a run down on which companies stands to win or lose in the DVDSteve Troxel-7/21/1998
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