An ambitious pay-to-play DVD format known as Digital Video Express (Divx) is
dead in the water just a year after its launch in the US and before the planned
launch in Europe. Backer Circuit City, the US electronics chain, has lost over
$100 million attempting to woo consumers—the product was launched
after DVD hit the market and so it missed its chance to grab the all-important
gadget fans who adopt new technology early. The Divx disc looked like an
ordinary DVD movie disc but cost only $4.50 and was encrypted to play on
a Divx player for 48 hours. After that, the owner had to use a modem to pay for
more viewing time.
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