DIVX Exit’s Stage 6 and Disney Enters Stage 9

March 4, 2008

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Stage6

Another month and another change in the video landscape. Last week I received an email from the folks over at the video sharing site Stage 6 (that was run by DIVX) informing me that they were shutting down operations the end of February. With the flood of new video sharing sites on the ever expanding landscape for User Generated Content (USG) it was inevitable that DIVX would shut this service down, as it was not a money maker at all. So no surprise here. Effective March 1^st former users of the DIVX site are now redirected via a link to VEOH who who has assumed most of the clients from DIVX, that is the ones that did not move their content some where else.

In a totally coincidental event with interesting timing was ABC’s DISNEY company making the formal announcement of their foray into the online video scene with the advent of STAGE 9. Where DIVX and DISNEY differ is that DISNEY is going after full on BROADBAND content vs. the USG format that DIVX embarked on. Disney is also developing projects for full series created specifically for the broadband video markets. In this respect they can achieve monetization via add revenue just because of who they are and what they will bring to the table. (The team over at NewsOXY has a good article on Disney.)

I think this year we will see a lot more firms move away from the basic garage made, USG ,YouTube type of video entry, and will see the filed morph into more professionally done video projects. The cutesy stuff on the USG sites is just that. It has not made much money for those users or for those that have created the content. If the companies that host the content are to become profitable they will all need to adopt some form of add revenue policy. This means that in order to attract advertising dollars, the quality of the content will have to increase. That is were firms like Virtual Interactive Systems based in Tampa Florida, come into play. We are working with Small to Medium Business to add video advertising content to get their products and services discovered in their local markets and beyond to even international exposure.