DivX to shut down Stage6

We created Stage6 with the mission of empowering content creators and viewers to discover a new kind of video experience. Stage6 began as an experiment, and we always knew there was a chance that it might not succeed. In many ways, though, the service did succeed, beyond even our own initial expectations. Stage6 became very popular very quickly. We helped gain exposure for some talented filmmakers who brought great videos to the attention of an engaged community. We helped prove that it’s possible to distribute true high definition video on the Internet. And we helped broaden the Internet video experience by offering content that is compatible with DVD players, mobile devices and other products beyond the PC.

So why are we shutting the service down? Well, the short answer is that the continued operation of Stage6 is a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide. There are a lot of other details involved, but at the end of the day it’s really as simple as that.

Now, why didn’t we think of that before we decided to create Stage6 in the first place, you may ask? That’s a good question. When we first created Stage6, there was a clear need for a service that would offer a true high quality video experience online because other video destinations on the Internet simply weren’t providing that to users. A gap existed, and Stage6 arrived to fill it.

As Stage6 grew quickly and dramatically (accompanied by an explosion of other sites delivering high quality video), it became clear that operating the service as a part of the larger DivX business no longer made sense. We couldn’t continue to run Stage6 and focus on our broader strategy to make it possible for anyone to enjoy high quality video on any device. So, in July of last year we announced that we were kicking off an effort to explore strategic alternatives for Stage6, which is a fancy way of saying we decided we would either have to sell it, spin it out into a private company or shut it down.