Developed by: David Furey, Steve Tannehill  

Updated\Added areas: Consumer concerns: #3 (last paragraph, updated scenario concerning player dieing). Rental stores: # 4, 5 (new additions). I also updated the sales figures and how many movies are available. 

Consumer concerns: 

• The DIVX unit requires a phone connection, how many people have a connection next to their VCR\LD\DVD unit, not many. So we are either looking at a long cable (annoying and a hazard) or a fee to have a new phone extension put in. I already have a modem, fax and answering machine and they want to add another!
• Your viewing habits can and will be known by DIVX and they will use it (possibly sell). 
• You "cannot" take a DIVX disc to your grandparents or friends (whatever) without them having a DIVX player as well. If they have a player they will have to pay a RENTAL fee to watch the movie. This will happen even if you have purchased the UNLIMITED viewing rights. A Gold DIVX (designed only for unlimited viewing, direct sale not for rental) disc can be played on any DIVX machine, but not on a standard DVD machine. How this works... Each player and every disc has a unique serial number, when you hook up your player you will need to create an account with DIVX (the player's code is used here). Now, when you insert a DIVX DVD it (DIVX player) will read the serial number and compare it against its list of viewed movies (it will keep track of the SN) you have seen. If it is new, you will get the 48-hour viewing period. If it's not new and it's been longer than 48 hours since you paid for viewing, it will record that you need to be charged for it (passed onto the DIVX center when it calls the 888 number later). Now, once you have viewed the movie that serial numbered disc is recognised by ONLY your machine (it remembers the SN). So, you decide to purchase (if available, not all titles can be bought) UNLIMITED viewing rights. DIVX takes your money and your player marks the movies SN as being unlocked for UNLIMITED viewing. So, when you go to another machine, its memory won't recognise your movies SN so it will charge you (friend) for viewing the movie. Everything depends on the machine, not the clearinghouse.So, if your player dies, so does its memory of the SN (discs) for the movies you have. Once you get a new\replacement player, there are two ways of updating the player to recognise your discs. First, you would call DIVX (you have too, so you can give them the new players SN) and they could update your player when it connects to the clearinghouse (assuming they can do this). This could take a lot of time, depending on when the players will check in. Second, you would call DIVX (no way around this, have to give them the new players SN) and they would give you a list of codes to enter. This wouldn't be so bad if you only had a couple of DIVX discs. If you had ten DIVX discs or more (as is the idea) then it would be very annoying.
• Each player has a MAILBOX where DIVX will send your bills and anything else they want for you to see. Not a bad idea, unless they start sending adds and such.
• Nobody has said yet that they wouldn't (this refers to Disney mainly) restrict when you could watch a movie. I'll explain, say "Beauty and The Beast" is playing in the theatre, could Disney have the DIVX centre tell your machine to stop playing that title because it's in the theatre? 
• The DIVX discs are NOT compatible with standard DVD players. The current 170,000+ (some reports say over 250,000) owners are out of luck, wasted money (some makers of these units are DIVX partners, what's up with that?)
• What happens if DIVX dies, YOUR (really the studios) movies are worthless. Who will the player call if DIVX is gone (It will stop working after awhile, they had to build safe-guards into the players to stop people from renting once and then disconnecting the phone so the unit couldn't update the central office for billing). You can't play them on a non-DIVX unit and you can't play them on a friends either. So, now all those movies you purchased are worthless. YOU WASTED YOUR MONEY, because you don't own them (even if you bought them) the studio does. (The above is one of the areas that is being looked at from a legal perspective)
• Even if you want to view a TRAILER or a clip, it will cost you if it's outside the 48 hour rental period ($3 just to look at a scene really quick, I think not)
• Do you have kids, how many times do they watch a movie? Sure you have 48 hours, what about after that, another charge-then another. Until either you reach the point where DIVX says you have basically purchased the disc and gives you UNLIMITED viewing or you keep getting charged (remember, not all titles will be available for UNLIMITED viewing). You could go out and buy a Gold DIVX disc (if available, probably not though), now you have paid rental fees and full price.
• The actual DIVX player will be more expensive than a standard DVD player will. They are expected to be around $100.00 (US) more.. 
• All the PC based DVD players are NOT compatible with DIVX as well. So, more money wasted by consumers if DIVX happens. 
• What about when you're not home, who will control the player? There is a built in option to enable PARENTAL CONTROL, this will effectively lockout any playing of discs without the authorisation code. This will apply to all discs except ones already unlocked (does that mean R or X rated movies will be viewable), new discs that have never been used on the player (same question about content availability) and movies with UNLIMITED viewing (same question again) rights as well as standard DVDs. So, you leave your kids at home with a babysitter and he\she decides to watch a movie, they brought over their favourite movie (maybe one that he\she bought at a drug store or a 7-11, Quicktrip, Circle K (you get the idea)). Slap the disc in and your kids are watching horror movies, movies with excessive violence or sex scenes. God forbid the babysitter slaps in an adult movie, wants to hear it on your new sound system. Some families do have morals that they live buy. So, how many parents will remember to activate the PARENTAL CONTROL anyway? Yet alone the feature that forbids certain rating levels (it is there, in the menu that is more difficult than a VCR for most). 
• What guarantees will there be against children buying DIVX discs that are rated R, NC-17 or even X? If you can get them anywhere, which will happen, who enforces the law? Video stores do their best to restrict titles from being rented to minors, do we expect everyone to start doing this, I think not. If that were the case then alcohol and cigarettes wouldn't be sold to minors.

Rental Stores: 

• How do you make a profit from something that WON'T record and that your aren't required to return. They say the disc will cost around $5.00. Ok, how much does it cost for a re-seller to purchase one, maybe $2 or $3? We are only looking at a profit of $2 or $3 at most (remember, not required to return). No repeat business!
• Everyone can carry these discs; you won't have to be a Rental store. You could get one at the supermarket, book store, drug store, shopping malls - even McDonalds^© could give them away (probably will).
• Money will go directly to the studios not the video store and the studio. No profit, no store!
• Where are the video stores supposed to place the discs? Most of the space in a store is taken up by video cassettes. Will they put the DIVX discs next to standard DVD discs, won't that be a little confusing for the consumer? 
• What is to stop someone from re-selling DIVX titles? Here is the scenario: The thief gets several boxes of thrown out discs. The thief makes sure they look good and packages them in new jewel cases if necessary (tells everyone that's why he gets the discs so cheap). You buy 5 discs from the guy and so do a bunch of others that day. The thief just made all the money, the only thing the thief has to pay for is the jewel cases he used. Now, you get home and put the first DIVX disc into your DIVX player. The movie looks great, no problems, thinking to yourself "I just got a great deal". A month goes buy and you get your bill from DIVX. Wait a minute you say, these five movies were brand-new I shouldn't have got charged a viewing fee (initial viewing fee is covered in purchase price). So, now you have paid several dollars to purchase the DIVX discs and you are now being charged a viewing fee. It is possible that DIVX will clear the charges, but one never knows. As for the thief, he's long gone. Remember that it has been several weeks since your purchased the DIVX discs, he could be anywhere.

Environmental Issues: 

• What happens to all those DIVX DVD titles that get thrown away (watched once, then chucked (not required to return to anyone)). They will all end up in a landfill somewhere. What effect will millions of these have on the environment?

Extra facts: 

• The standard DVDs are available right now, over 200+ titles as we speak are available, many more due out in the months ahead (around 300-400+ movies by the end of the year, at least! Some estimates say much more than that, due to imports and such). We are talking feature films like "Men In Black", "Austin Powers" - not just the old movies are coming out. Not in 6 months or a year, now. I have Twister, Space Jam, Bladerunner, The Right Stuff, Murder At 1600, Total Recall, Fargo, Long Kiss Goodnight, Mars Attacks!, Forbidden Planet (classic), Absolute Power, Blazing Saddles, Desperado, In The Line Of Fire, Stargate, Rumble In The Bronx, Shine, Wizard of Oz (classic) and Eraser amongst others.
• We understand the Studios concern with Copyright. But the DIVX idea is more than that. It allows the Studios to dictate where and how YOU view movies. Even if you purchase the UNLIMITED viewing rights, they still control where you can watch it and make money doing it.

If you have any additions or updates you think belong in this FAQ, e-mail me and I will add it. 

 

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