Divx; Summary and Implications

Summary:
Divx was an outgrowth of the video codec Mpeg 4, which was hacked by Gej. Divx was named after the failed Circuit City venture that allowed DVDs to be played and discarded after a number of paid uses in divx players. Divx was cleanly written in version 4 so that legal hurdles in marketing could be bypassed. Hollywood because of high DVD sales didn't switch over to Mpeg 4, but instead stayed with Mpeg 2 leaving Divx Networks the only company developing the mpeg 4 standard thus giving it a competitive advantage to the licensing agreements it gave out once video on demand through a b…