Originally posted by: rahvin
Divx came out at nearly the same time as DVD. There were about two years that the Divx format had more players than DVD's in comsumers homes (because of aggresive marketing by CC). The reason DIVX failed is because people don't want disposable discs (ranging from reasons like you can buy a lot of movies these days for less than $12), period. Divx cost Circuit City a 200million dollar write-off, a financial tragedy they still haven't recovered from. M$ can certainly afford a loss like that better than CC but the idea that this recycled idea is going to be "popular" is just assine. Consumers will reject the format just like they did in the past, no one wants someone telling them how they can use media they buy.
How can you say "people don't want disposable discs, period." People rent movies. If they can price the discs about the same as a rental, I think it
could succeed. Weren't Divx discs like $5-6? The article listed 3 pounds per disc, which is the same price range, but it also lists 15-20 pounds to buy a DVD which is absurdly high in the US. If they can price them at $3-4 there are people who would buy them rather than renting and returning. Regardless, it's not like Microsoft isn't aware of the Divx failure, and I'm sure they've done a lot more market research than a bunch of guys on an Internet forum who are
not the intended customers for a product like this.
Anyway, my point is that everyone latched onto the piracy prevention aspect and got their panties all in a bunch. I honestly don't see how this is going to prevent piracy one bit. The pirates will always find a way until there aren't enough people left willing to pay for movies to support the industry.
And yeah, I think Microsoft can manage to lose $200 million, they've pissed billions down the drain trying to beat Sony at console video games.
Edit:
Regarding this quote:
no one wants someone telling them how they can use media they buy.
They're giving you another OPTION. They're not making $20 DVDs one time use, they're giving you the option of buying a one time use DVD instead of renting. They're letting you rent a movie for the same price and not have to return it! If you want to do whatever you want with your DVD, buy the $20 version. If you want to watch it once and never again, buy the
much cheaper one-time-use version.