Comments on: Dr. DivX or Mr. Hyde – The $145 Million Dollar Question http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/ Wed, 31 Aug 2011 01:39:44 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Zatz Not Funny. . .»Blog Archive » DivX Unmuzzled, Quiet Period Ends http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1513 Zatz Not Funny. . .»Blog Archive » DivX Unmuzzled, Quiet Period Ends Tue, 31 Oct 2006 19:41:33 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1513 [...] For the first time ever, I had the opportunity to listen to DivX publically comment on their business plan and their execution over the last few months. In the past, I’ve followed DivX as closely as any other tech enthusiast and while I understood that the quality of their codec and the underground roots that set them apart, very little information was leaked out about this private company based in San Diego California. While many have either never heard of DivX or have no idea of what the company does, over the years, I’ve formed a fond appreciation for their technology and their inexplicable ability to survive regardless of the competitive landscape. [...] [...] For the first time ever, I had the opportunity to listen to DivX publically comment on their business plan and their execution over the last few months. In the past, I’ve followed DivX as closely as any other tech enthusiast and while I understood that the quality of their codec and the underground roots that set them apart, very little information was leaked out about this private company based in San Diego California. While many have either never heard of DivX or have no idea of what the company does, over the years, I’ve formed a fond appreciation for their technology and their inexplicable ability to survive regardless of the competitive landscape. [...]

]]> By: Davis Freeberg’s Digital Connection » Blog Archive » DivX Unmuzzled - The Quiet Period Ends http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1503 Davis Freeberg’s Digital Connection » Blog Archive » DivX Unmuzzled - The Quiet Period Ends Tue, 31 Oct 2006 05:47:17 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1503 [...] For the first time ever, I had the opportunity to listen to DivX publically comment on their business plan and their execution over the last few months. In the past, I’ve followed DivX as closely as any other tech enthusiast and while I understood that the quality of their codec and their underground roots set them apart, very little information was leaked out about this private company based in San Diego California. While many have either never heard of DivX or have no idea of what the company does, over the years, I’ve formed a fond appreciation for their technology and their inexplicable ability to survive regardless of the competitive landscape. [...] [...] For the first time ever, I had the opportunity to listen to DivX publically comment on their business plan and their execution over the last few months. In the past, I’ve followed DivX as closely as any other tech enthusiast and while I understood that the quality of their codec and their underground roots set them apart, very little information was leaked out about this private company based in San Diego California. While many have either never heard of DivX or have no idea of what the company does, over the years, I’ve formed a fond appreciation for their technology and their inexplicable ability to survive regardless of the competitive landscape. [...]

]]> By: davis http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1322 davis Wed, 11 Oct 2006 06:04:40 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1322 Vy - I can't claim to be an "expert" on the format because there are those who are by far more qualified to talk about the quality of their codec, but my understanding is that the flash/shockwave videos are a direct competitor to the DivX format. Flash is also very efficient, but it's not a good solution for downloading, as much as it is for streaming. As far as I know, you can't upload DivX files to YouTube or Google Video, however there are many solutions that exist where you can convert the files to a format that is acceptable. DivX's real strength is their ability to let you burn movies to a DVD and watch it in a DivX certified player. As long as they can maintain demand for DivX content these CES relationships shouldn't be in jeopardy, but if Window/QuickTime or any other competitors are able to eat into this, it will be a huge risk for the company. At $700 million the company is by no means cheap, but if they can convince CES manufacturers to continue to make DivX DVD players, PVRs and video cameras, they will be in a healthy position to benefit from the transition to digital video. Vy – I can’t claim to be an “expert” on the format because there are those who are by far more qualified to talk about the quality of their codec, but my understanding is that the flash/shockwave videos are a direct competitor to the DivX format. Flash is also very efficient, but it’s not a good solution for downloading, as much as it is for streaming. As far as I know, you can’t upload DivX files to YouTube or Google Video, however there are many solutions that exist where you can convert the files to a format that is acceptable. DivX’s real strength is their ability to let you burn movies to a DVD and watch it in a DivX certified player. As long as they can maintain demand for DivX content these CES relationships shouldn’t be in jeopardy, but if Window/QuickTime or any other competitors are able to eat into this, it will be a huge risk for the company. At $700 million the company is by no means cheap, but if they can convince CES manufacturers to continue to make DivX DVD players, PVRs and video cameras, they will be in a healthy position to benefit from the transition to digital video.

]]> By: Vy http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1318 Vy Tue, 10 Oct 2006 11:10:39 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1318 I agree, Davis. Growth for DivX will most likely come from major contracts with video providers/ cellphone companies. DivX may be well known with the techies but for an average user, the most widely used formats remain Windows Media/ Real/ QuickTime. These usually come preloaded on computers (WMA for sure); not sure if DivX comes preloaded on any system. If that starts happening, it will be another boost to DivX. Question- YouTube/ Google Video seem to wrap their video format in Shockwave. How does it help? From a user's perspective, the above was all "pulling" videos from content providers but "pushing" videos is something that needs to be considered too. I believe if I had a DivX file it may not be uploadable to either YouTube or Google Video because I did not see this format as an option. This may soon change and will be a kick for DivX I think. Currently the only DivX camera out there is a Pentax (not the most sold camera brand). Things will be a lot more positive once a Canon or Sony allows DivX format video creation. I agree, Davis. Growth for DivX will most likely come from major contracts with video providers/ cellphone companies. DivX may be well known with the techies but for an average user, the most widely used formats remain Windows Media/ Real/ QuickTime. These usually come preloaded on computers (WMA for sure); not sure if DivX comes preloaded on any system. If that starts happening, it will be another boost to DivX.
Question- YouTube/ Google Video seem to wrap their video format in Shockwave. How does it help?
From a user’s perspective, the above was all “pulling” videos from content providers but “pushing” videos is something that needs to be considered too. I believe if I had a DivX file it may not be uploadable to either YouTube or Google Video because I did not see this format as an option. This may soon change and will be a kick for DivX I think.
Currently the only DivX camera out there is a Pentax (not the most sold camera brand). Things will be a lot more positive once a Canon or Sony allows DivX format video creation.

]]> By: Davis Freeberg http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1317 Davis Freeberg Mon, 09 Oct 2006 14:53:50 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1317 There is about as much possiblity of Google using DivX after they acquire YouTube as there is that they will use DivX before they acquire YouTube. The possibility always exists for this to happen and part of why this stock should trade at a premium is because of the sheer possibilities that present themselves if DivX can make any deal with any company, but considering that Google and YouTube are both already using their own codecs, I wouldn't be betting on this to happen. Instead I would be focusing on the possibility of a Verizon or Cingular partnering with DivX for a cell phone video product or a major studio partnering with DivX to do TV downloads. So far the studios have made their content available on their proprietary sites using streaming technology, but that could change as the studios become more comfortable with downloading. If you look at the sheer number of people who streamed the Office webisodes, I think it speaks to the potential size for this market if they studios embrace downloadable content. I'm not sure how this DivX benefits from Google buying YouTube is getting spread, but frankly I think it's speculation on top of more speculation. There is about as much possiblity of Google using DivX after they acquire YouTube as there is that they will use DivX before they acquire YouTube. The possibility always exists for this to happen and part of why this stock should trade at a premium is because of the sheer possibilities that present themselves if DivX can make any deal with any company, but considering that Google and YouTube are both already using their own codecs, I wouldn’t be betting on this to happen. Instead I would be focusing on the possibility of a Verizon or Cingular partnering with DivX for a cell phone video product or a major studio partnering with DivX to do TV downloads.

So far the studios have made their content available on their proprietary sites using streaming technology, but that could change as the studios become more comfortable with downloading. If you look at the sheer number of people who streamed the Office webisodes, I think it speaks to the potential size for this market if they studios embrace downloadable content. I’m not sure how this DivX benefits from Google buying YouTube is getting spread, but frankly I think it’s speculation on top of more speculation.

]]> By: Anonymous http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1316 Anonymous Mon, 09 Oct 2006 14:15:02 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1316 Any comments on the rumored Google buyout of YouTube? Is there a possibility that Google starts using DivX as the codec of choice once it acquires YouTube? Any feedback is much appreciated. BTW- very nice analysis of DivX. Any comments on the rumored Google buyout of YouTube? Is there a possibility that Google starts using DivX as the codec of choice once it acquires YouTube? Any feedback is much appreciated. BTW- very nice analysis of DivX.

]]> By: Anonymous http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1295 Anonymous Fri, 06 Oct 2006 05:20:04 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1295 totally awesome analysis my friend totally awesome analysis my friend

]]> By: Red http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/comment-page-1/#comment-1253 Red Tue, 03 Oct 2006 09:55:20 +0000 http://davisfreeberg.com/2006/10/03/dr-divx-or-mr-hyde-the-145-million-dollar-question/#comment-1253 Very nice article. :-) Very nice article. :-)

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