This article is about the pay-per-view DVD system DIVX. For the video codec, see DIVX.

DIVX (Digital Video Express) was an attempt by Circuit City and the entertainment law firm Ziffren, Brittenham, Branca and Fischer to create an alternative to video rental in the United States.

DIVX was a rental format variation on the DVD player in which a customer would buy a DIVX disc (similar to a DVD) at a low cost, which would be able to be freely viewed up to 48 hours from its initial viewing. After this period, the disc could be viewed by paying a continuation fee, typically $3.25. DIVX discs could only be played on special DIVX/DVD combo players that needed to be connected to a phone line. DIVX Viewers had to set up an account that additional viewing fees could be charged to. The player would call an account server over the phone line to charge for viewing fees similar to the way DirecTV and Dish Network satellite systems handle pay-per-view. Viewers who wanted unlimited viewing of a particular disc could pay to convert the disc to Silver status for a special fee. The physical disc was not altered in any way. The viewer s account kept track of the status of each disc. The Silver disc could be kept for future viewing, resold, given away, or discarded.

The DIVX rental system was created in 1998 in time for the holiday season and was discontinued on June 161999, exactly 1 year later, due to the costs of introducing the format, as well as its very limited acceptance by the general public. Over the next two years the DIVX system was to be phased out. Customers could still view all their DIVX discs and were given a $100 refund for every player that was purchased before June 16, 1999. All discs that were unsold at the end of the summer of 1999 were destroyed. The program officially cut off access to accounts on July 7, 2001.

There was a large movement on the Internet, particularly in home theater forums, against DIVX. Many people in various tech and entertainment communities were afraid that there would be DIVX exclusive releases, and that the then-fledgling DVD format would suffer as a result. The Walt Disney Company, for instance, had some DIVX-only releases planned; other studios would probably have followed suit. Many were relieved when the format was finally abandoned.

Another contributing factor to the death of the DIVX format would stem from allegations that Circuit City management was actively instructing their employees to mislead customers who were shopping for a new DVD player. Since DVD was still in its infancy during this time, public knowledge of available formats was still limited. It is also alleged that sales associates went so far as using scare tactics to state that certain directors movies would never be available on the DVD format. Circuit City has denied the allegations.

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