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 …

…of business because with the new development of the H.264 there would be no need for a physical medium thus freeing everyone to have all movies streamed to them. The internet will become increasingly more relevant as it becomes a primary vehicle for entertainment therefore the market for companies who will to rebuild the internet infrastructure and implement the fast protocol and remove the TCP/IP protocol will be the industry giants of the future.