DivX Shutting Down Stage6

DivX's Stage6 video sharing service will go dark on February 28, as the company works to focus on its core technologies.

Digital video developer DivX has announced it will be shutting down its online video sharing service Stage6 effective February 28, 2008. The ability to upload videos has already been disabled, and DivX says it will work with some content providers to set up alternative online distribution methods.

"Our core business is to work with a wide variety of partners to give consumers a high-quality digital video experience on any device or platform," said DivX CEO Kevin Hell, in a statement. "By no longer expending resources on Stage6, we sharpen our focus on creating a global standard for digital video while building a business that maximizes shareholder value."

DivX launched Stage6 in part as a response to video sharing sites like YouTube: although those sites offer a wide variety of video content, almost any YouTube user will tell you the average quality isn’t very high. Stage6 was perfectly happy to accept video uploaded from a camera phone, but was also looking to showcase high-definition content—and showcase its own DivX technology. The service itself went through many hiccups (including a recent attack that compromised many user accounts) and a copyright infringement suit from Universal Music Group.

DivX has been trying to decide what to do with Stage6 since last July, once it realized running an online video service was a costly operation that didn’t align well with its strategy to push DivX technology onto as many platforms and devices as possible. DivX examined spinning Stage6 off into its own company and selling the service, but neither option panned out.