DIVX

Region

United States

Associated With

Digital Video Express, L.P. - system operator

Defining Feature

Telephone-linked discs with a 48-hour viewing period activated on first play

Status

Discontinued - marketing ended in 1999; registered access was promised through 30 June 2001

Overview

DIVX was a telephone-linked home-video disc system that combined a DVD player with pay-per-view access.

A disc, suggested at $4.49, opened a 48-hour viewing period when first played. The player’s modem sent registration and billing data over a telephone line, while films could be watched without keeping the line connected.

Digital Video Express launched DIVX nationally in the United States in late 1998, then announced on 16 June 1999 that it would stop marketing the format. Registered customers were promised access through 30 June 2001.

Why It Mattered

DIVX separated possession of a film disc from lasting access to its contents. Even films upgraded to “unlimited viewing” remained subject to the service’s survival: the shutdown announcement limited those discs to the phase-out period and offered conversion refunds. A collection could therefore remain physically intact while the permission to watch it came to an end.

Viewing Terms

• A suggested $4.49 DIVX disc began a 48-hour viewing period when first inserted and played.
• Further 48-hour viewing periods were offered for about $3.25.
• Before the shutdown announcement, customers could pay to convert films to unlimited viewing on DIVX-equipped players registered to their account. New conversions stopped on 16 June 1999. Existing converted discs remained viewable through 30 June 2001, and customers could request a full refund of the conversion price.

Registered-Player System

• Compatible players used a modem and telephone line for registration and billing-data transfer, but did not need to stay connected while a film played.
• The system used electronic access control rather than discs that physically expired or degraded.
• A patent record names Digital Video Express, L.P. as original assignee of a conditional-access digital-content distribution system; patent disclosures do not establish that every feature shipped in 1998.

Discontinuation and Phase-Out

• Digital Video Express announced on 16 June 1999 that it would cease marketing DIVX and discontinue operations.
• Registered customers were promised the ability to view DIVX discs and obtain subsequent viewings through 30 June 2001, while DIVX-featured players were to remain usable for conventional DVDs.
• Circuit City later recorded a $114.0 million after-tax loss on disposal of the discontinued operation, covering several stated provision components rather than a simple total cash-loss figure.

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