More (DivX) ways to get movies from the Web to the TV
DivX announced another ally today: the downloadable movie site CinemaNow. On some unspecified date in the future, the latter will offer customers the option of downloading movies in the DivX format (using the DivX DRM) instead of CinemaNow's usual Windows Media files. DivX's codec is impressive, but the main improvement the deal offers consumers is an easier way to play the movies they rent or buy on their TV set. The DivX DRM enables people to play the files on every DivX-certified device in their personal domains. For most people, that would be a DVD player. And unlike other DRM approaches in the market, DivX enables rented movies to be burned onto disc, not just download-to-own files. In other words, it's a practical living-room solution for online movie rental sites.
Apple, Netflix and Amazon.com have a different strategy for delivering rented movies to TV sets: they stream the flicks to specialized set-top devices (such as the Apple TV, Roku's Netflix box and Sony's back-of-the-TV Bravia Internet Video Link). DivX plays in that arena, too, with its DivX Connected boxes (currently available only from D-Link). The D-Link set-top is a solid entry into the field, although it suffers from the same limitations as everybody else's "media extenders": it's compatible with only a portion of the vast online universe of video. The challenge for DivX and CinemaNow will be to persuade more studios to embrace the DivX format and DRM; so far, the only announced taker in Hollywood is Sony Pictures. They'll need a much more comprehensive lineup than that to make the DivX option a meaningful addition to CinemaNow's service.

I think that DivX rental DRM works a little bit different then the Cinema Now program. With Cinema Now, you have the option to subscribe to a monthly plan for $30 and currently the DRM checks in to make sure your account is active. DivX "rental" DRM is based on the number of plays, so it would be possible for me to be a member for a month, but then watch that film six months later. I'm not sure that this will even make a difference, but have questions as to how/whether CinemaNow will take advantage of DivX when it comes to their subscription program.
I also think that Cinema Now doesn't have to be as worried about studio support as someone like Netflix or Movielink would be. It's a dirty little secret that Cinema Now makes more money on their porn VOD business then on the Hollywood content and DivX has been helping that community for years.
I'd also like to point out that the limitation of the D-Link box is also an advantage for DivX. Because of it's limited support, it makes consumers seek out DivX content to add to their home eco-system. While it's obnoxious to not be able to play your windows or itunes files, it also further entrenches users into the DivX camp which is a good thing for the company. They will eventually add more codec support to the product, but restricting it to DivX isn't as bad for them as some would believe.
Posted by: Davis Freeberg | July 30, 2008 at 05:48 AM