Chapter 1

DVD’s Relationship to Other Products and Technologies 75
The advantages of Divx were as follows:
• Viewing could be delayed, unlike rentals.
• Discs need not be returned. No late fees.
• You could watch the movie again for a small fee. Initial cost of “owning”
a disc was reduced.
• Discs could be unlocked for unlimited viewing (DivxSilver), an inexpensive
way to preview before deciding to purchase.
• The disc was new, with no damage from previous renters.
• The rental market was opened up to other retailers, including mail
order.
• Studios got more control over the use of their content.
• You received special offers from studios in your Divx mailbox.
• Divx players (with better quality and features than comparable players)
were a steal after Divx went out of business.
The disadvantages of Divx were as follows:
• The player cost was higher than a DVD player (about $100 more at
first, about $50 later).
• Although discs did not have to be returned, the viewer still had to go
through the effort of purchasing the disc. Cable/satellite pay per view
is more convenient.
• Divx cost more than a regular DVD rental ($3 to $7 versus $2 to $4).
The company raising prices later had few obstacles, because it had a
monopoly.
• Casual quick viewing (looking for a name in the credits, playing a
favorite scene, or watching supplements) required paying a fee.
• Most Divx titles were pan and scan (see “What’s Widescreen? How Do
the Aspect Ratios Work?” in Chapter 3) without extras such as foreign
language tracks, subtitles, biographies, trailers, and commentaries.
• The player had to be hooked to your phone line, possibly requiring a
new jack in your living room or a phone extension cable strung across
it. Players required a connection once a month or so, so you could
periodically connect it to a phone line.
• Divx couldn’t be used in mobile environments, such as a van or RV,
unless you took it out and connected it to a phone line about once a
month.