DivX options for Stage6

DivX is concerned about the street seeing the capital expenditure of Stage6 and freaking out when there are no revenues.

If they keep Stage6, they would learn a huge amount about delivering community oriented consumer video services. If you think about it, where does DivX go now? It has a great codec, with players in 100 million consumer devices. It has bought MC for it’s H264 capability so effectively it will support industry standards. Video availability is exploding, both professional and amateur and everything in-between.  They are positioning themselves across the entire value system.

But what’s left after they license the codec and codec tools to everyone under the sun?

It’s simple, DivX has to move beyond the codec.

They have to start delivering services to support the video experience for all types of video content. They have to dig deep into the video experience. Hell says the TV is the best device on which to watch video. If so, DivX should do something about it. That means keeping Stage6. Sure, DivX wants to enable one hundred or even one thousand stage6’s, but they can’t do this if they don’t learn by doing one themselves.

Unless they have learned enough already! i.e., what does it take to make a video community?

If so, I reckon we will see DivX announce a sale, not a spin-off. Companies that are trying to solve the last-20 feet problem (Sandisk, D-link et al) have a huge opportunity to hit the ground running. Imagine if they acquired stage6. I can think of many cool services to deliver internet video to TV’s. And with a community of 10 million viewers, they’d have a kick start.


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