DivX Pulls Plug on Stage6 84
Xelios writes "DivX announced today that it will be shutting down Stage6, its high-quality video sharing site. 'So why are we shutting the service down? Well, the short answer is that the continued operation of Stage6 is a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide. There are a lot of other details involved, but at the end of the day its really as simple as that.' The news comes after the former CEO of DivX stepped down last year to head Stage6, which was to become a separate company, and the still ongoing legal battle with UMG."
DivX lost the advantage when h264 came along (Score:4, Informative)
Re:I think I speak for everyone... (Score:5, Informative)
Re:What now for DivX (Score:5, Informative)
Re:I think I speak for everyone... (Score:2, Informative)
The video quality is quite nice, actually. A lot better than Youtube's.
nooo (Score:5, Informative)
It seems stupid to me that they couldn't make their business model work. They had excellent technology, but obviously like so many online ventures they didn't think very hard about how they were going to make money.
It seems obvious to me that they could have gotten significant cash on advertising if they did speach to text translation on the videos and then did some context based ads on that text. However, they seemed to have almost no advertising on their site, and thus no way to recoup losses.
Additionally, they could have tried a model that required users to subscribe to stage6 as basically an internet television service. However, they seemed like they weren't really willing to try *anything* to recoup expenses, and just killed the project by inaction.
This worries me because the same problems basically face youtube, and similarly google has done pretty much nothing to make the site profitable since purchasing it. The only real change has been the removal of copyrighted material from the site, and that can hardly be called an improvement.
Hopefully divx will license out the stage6 browser plugin and serving infrastructure to other companies so the technology won't die.
Re:DivX lost the advantage when h264 came along (Score:2, Informative)
Re:DivX lost the advantage when h264 came along (Score:3, Informative)
Sorry, completely wrong, because imeem.com has been doing this for a while now, I know because I was part of the team implementing this, feature. I pointed out the new Indiana Jones Trailer [imeem.com] on imeem which is delivered at a resolution of 768x360 and 800kbit/sec, and when it's played full screen it looks pretty darn nice.
Re:I think I speak for everyone... (Score:4, Informative)
as your media player
Re:I think I speak for everyone... (Score:3, Informative)