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Divx. One of the reasons more titles have
not been released yet on DVD is because of the impending release of the Divx specification
and players. Divx is a rival standard that is revolutionary in how copy protection is
implemented--it is in fact the most central reason for the standard's very existence. Unlike an "open" DVD disc, a Divx disc stores its video in an encrypted form; only a properly set up Divx player can decode its contents. A Divx disc will be available for purchase at about $5 retail, about one-fourth the cost of an open DVD disc. The $5 purchases ownership of the medium, but only buys 48 hours to view the content from the first time the disc is inserted into the player. After a 48 hour period, viewing the disc will require payment of a viewing fee that is less than the original purchase price. A record of which discs are in their 48-hour viewing period and which discs need to be rebilled is stored in the Divx player, which calls out through a modem during the night and transfers that information to Divx, where each player is associated with a billing account. Divx handles the billing of the viewer, and the money is split between Divx, the movie's controlling studio, and the retailer at the original sale. |