Richard Alvarado

DivX Stage6 Traffic Explodes: Every Dream Has A Price

"but I think that they’d have a much better shot at convincing their OEM partners to sell a low priced DVD player with “DivX HD.”

Wouldn't that be fraud since DVD player cannot display an HD image?

DivX Considers A Profitable Break-Up, But Are There Any Long Term Benefits?

forgot to add that 1.3 billion people use the internet.

en.wikipedia.org/wiki/...

DivX Considers A Profitable Break-Up, But Are There Any Long Term Benefits?

"Instead, DivX approaches SA and says, let us sell Schwab ads on your site and we'll pay you more than what Google will. Then they syndicate that ad on the Motley Fool, various technology/business sites, paidcontent, whoever is willing to partner with them. Now instead of having 10 million views to sell, they've got 20 million."

This would only make sense if Divx was installed on 90% of the computers on the internet. It's not, flash is.

So as an advertiser what would you do?

a. switch to Divx and reach an audience of only 200 million, get more money per click.
b. stick with flash/google and reach 90% of the computers on the internet. *

en.wikipedia.org/wiki/...


I believe if you switch to Divx all you are doing is giving yourself a higher risk of your advertisement not being seen.

DivX Considers A Profitable Break-Up, But Are There Any Long Term Benefits?

Good theory. The problem is what is the point of buying Divx ads, if the user base (say 10million) is way less then flash (say 100million).

DivX Considers A Profitable Break-Up, But Are There Any Long Term Benefits?

Why would Take Two pick a stage of 10million(stage6) vs. a stage of 100million(youtube)?

Why would anyone?

Why DivX is Still a Great Long Term Growth Story

I have a different View on Divx.
Problems:
1. Where is the content?
-Almost 90% of the online content being creating is being transcoded to Flash.(see youtube)
-ABC (dynamic.abc.go.com/str...) is using Flash for its shows online.
-Website in between ABC and user created are also using Flash(see gametrailers.com)
- Microsoft and Apple dominate online downloads(see iTunes, see CNBC/NBC,)

Note: Look at Dolby (DLB), it makes money not only from hardware(TVs, DVD Players, Speakers, Receivers) but also from the software (Video Games, and DVDs and Movies).

2. With margins shrinking...
Something tells me that with margins shrinking in the cell phone market, Companies aren't going to hope that Dvix gets it act together and gain content.

$17 is a lot of money for one codec....