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DivX Pulls Plug on Stage6
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."
I rather disagree. Stage6 was indeed high quality, which was nice, but the plugin required for it was hideous. It caused my browser to crash many, many times, and half the time it didn't work, providing the message "Could not download video file." I'm a rather glad to see it go, if only because I won't have to deal the plugin anymore.
Or they never even tried to compete? Most people didn't even know it existed, there was no marketing push only of late have I noticed the embed url's to link to the videos directly etc. Far more importantly though they didn't try to offset costs. I'm sure they could've come up with a P2P based variant wherein users could have active clients helping them distribute the load with them providing heavy bandwidth sources reducing their costs pretty dramatically.