Stage6 Killed so DivX Could Thrive?

Posted by on February 26, 2008 at 1:36 pm.

Well, no sooner did I tout the growth and value of HD streaming site and they decide to close up shop. It could be my rationalization, but it sounds like they were a victim of their own success. According to some sources the combination of traffic, copyright policing and board greed (nixing a spin-out funding deal), led to a decision to shut down. I’m guessing deal negotiations also broke down when new investors wanted reps & warranties about copyright liability.

On the surface, shutting such a property down doesn’t make much sense…someone is probably too busy with the DivX-inside business model to mold the right Stage6 deal (including all the copyright complexity). But, sometimes such focus makes perfect sense…[UPDATE: especially if the core team is gone]

Jordan, I’m still interested in talking if you are…I’m guessing you’ve got something interesting in the worx…

UPDATE: TechCrunch provides a blow-by-blow on the Stage6 drama. As an early investor in DivX along with Frank Creer and others, I sure hope it wasn’t as bad as it sounds. There is still a lot of value in that property…

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