Death of a Streaming Video Content Delivery Giant: Is there Resurrection in Sight?

Death of a Streaming Video Content Delivery Giant: Is there Resurrection in Sight ?

You may be asking yourself, “Is this Stage6 he is talking about?” Indeed it is. Perhaps another question you may be asking as well, “This is old news. Why The BLOG now ?”

These are of course very good questions. I have been meaning to BLOG “Death of a Streaming Video Content Delivery Giant” I never did get around to the task. Many BLOGS and articles had already been written. I thought, “Dang it… beaten to the punch again !”

As some may know, I frequent the Google’s (gotta love that Google) Finance pages to look at the latest stock quotes, happenings, Finance talks and forums created by stock holders to exchange thought on the viability or monetization of their investments. I too (as a beginning learner) have participated in some of these conversations.

Today, as is usual for me, I went to look at DivX Inc., daily actions and transactions. To help explain the activity in one’s investments, there are always several articles or reference to articles to the side of the Corporation’s Historical Stock Price Chart. As I looked at NASDAQ:DIVX trends and patterns for the week, I began to wonder why such a fluctuation within just a couple of days. As we all know, there was a sudden drop in the price of stock at the time that Jordan Greenhall announced his resignation from DivX, Inc. as CEO. The market value of stock stabilized quickly plateaued and stabilized for a while. This was around the Jordan Greenhall Steps down as CEO: approx. $2.00 drop in DivX price in stock, just before the 3rd and 4th Quarter Financial report and Fiscal Year revenue Outlook (below analyst’s expectations.) The market seems to fluctuate some, but for the most part is fairly steady, yet lower since Jordan Greenhall’s resignation.

Within a few months after Greenhall’s resignation, Kevin Hell is announced by DivX, Inc. as the new CEO. At this point we see that the price of DivX Inc., stock takes a sudden jump up from $11.98 to $18.63 with in just a couple of days. For many that know their own financial portfolio, or frequent the finance pages, this is a HUGE investment payoff. Just the idea of a new CEO to stabilize the corporation, stabilizes DivX’s market value. Still, as time and acquisitions and contracts with large electronic corporations such is Panasonic, Sony and Hauppage and others are made, DivX Inc. stock price begins a slow downward spiral, within a couple of months of the announcement of Kevin Hell as CEO. The month of February brought many influences to DivX worth in the market; From certification grants (seems that this should have brought DivX value up perhaps no correlation), Yet again below analyst’s expectations of DivX, Inc. Quarterly revenue report. But perhaps, the biggest blow to DivX Inc. stock price, bringing along with it a panic in the market of product delivery viability, is its 3 day notice announcement of’s closure. There were many rumors and innuendos for a while, but the former Stage6 users dispersed looking for new sanctuary as if evacuees and refugees. Funny as this may sound, some of the Stock holders followed suit and began selling off their shares and stock expecting an inevitable demise of a once HD Quality streaming media or otherwise (and without competition) content delivery Giant. Other stock holders stood firm, and purchased the sudden excess of lower value ($9.37 per share) stock of the “short investors”. March introduced a wave of fluctuation and turbulence. Still, those that held on to their stock, didn’t lose much as the fluctuations, for the most part were tidal, and kept an average price.

As of today, Friday March 07, 2008 (the price of stock per share at $9.40, with a closing day price of $9.37), LiveUniverse Inc. publically announced that it had made an offer to DivX Inc., BEFORE the shutdown of Stage6, an excess of $11,000,000.00 and options of promoting DivX and generating a $5 million DivX Inc. product sales. In addition, DivX Inc. AND Its Share holders would receive a 10% of the new company or entity (merged online video sights). Additional asset offerings, acquisitions and equity participations can be found online at PR newswire and WebService journal owned by Sys-con Media. There is reason for Stock holders to be upset over the announcement by DivX, Inc. for reasons behind the closure of Stage6; That the shut down of Stage6 (3 day notice) was in the best interest of DivX Inc. and of its investors and stock holders. Investors and stock holders had been in a situation to own 10% of a new entity as merged my an online media and online community giant. Not quite the HD quality contender, but online giant nonetheless. DivX Inc. Investors and Stage6 community members, were never given these facts. To date, the information continues to be withheld from DivX’s “Investor Relations” announcements. Closure of one of DivX Inc. assets was not infact in the best interest of investors and share holders, as previously announced and devoid of certain facts. LiveUnivers Inc. officially released its proposal to stage6. LU, Inc. also tells us that upon making its offer to DivX, all communications ceased, and within 36 hours of cease of communications and discussions, DivX suddenly pulls the plug on its asset Stage6.

In a press release, earlier today, LU, Inc. stated that even today, DivX Inc. will not open any communications, and that any attempts are ignored. Opening dialog and communications for negotiations of a NOW closed and lost asset, would be in the best interest of DivX, Stage6 community, but importantly a huge interest and BEST interest of DivX, Inc. investors and share holders.

One of LU, Inc. sites, “” has recently created a channel called, “SaveStage6” ( It is a site and Channel where investors, share holders and Stage6 community members can rally to and voice its concerns over the non-communication stance that DivX Inc. has placed itself with LiveUnivers Inc. It is not too late to recover from our losses. It is not too late to have an asset acquired for the better interest of investors AND former Stage6 Community Members.


Usually, in many things, I try to take a non-interference policy. In this instance, such a stance would be against the better interest of all that have a vested interest.

Please join us (SaveStage6) channel members. Help save Stage6.

Yes. There is life after death, where Stage6 is concerned.

Jerry Zambrano


Has Video Stream Killed the Video Store: On Demand Media vs. Shelf Media Content

There seems to be an increasing demand for “On Demand” Streaming Media. Everyone is aware of the Podcasts, the low-quality to mid-quality video streams for your Blackberry or your Cell-phone. Even Bittorrenting is increasingly flagging the need for streaming media, whether it be for “On the Go” or whether its for Ease of access. Either way, society has definitely shifted (a long time ago) towards the need of Media to go. For the most part, this has not been a problem, as these video streams and casts have been at very best… High Quality and some in the HD formats, with 720p being at the high end, but at the cost of bandwidth and much larger files.

Recently, I’ve visited a few websites (I’ll list these sources later, this is only my rough draft) that offer, viable and ethical media content streaming with large throughputs, extensive storage capacity and highly compressed HD quality (supporting upto 1080p). All this for the the price of a sign up, with no fees. Some critics (I will cite these sources as well) have more than hinted, that these types of sites, facilitate piracy and violations of the DMCA (Digital Media Copyright Act).

Two companies have joined forces and announced their intentions of entering the Digital Licensing Management market, and becoming competitors against DLM giants such as Microsoft, Real Media, Apple and the likes. The two companies that have signed a contract towards this end are DivX Incorporated and [German Company credited for introducing the mp3 format (more info to follow)] and are promising to exonerate their previous histories of piracy facilitation (Citation here from and join forces to digitally encode Licensing Water Marks. Thus, bringing into Stage… birth of a streaming digital On-Demand Media Content.

1. Hasn’t YouTube and MySpace already done this?

A: Not to this extent. And definitely not at these capacities that equal or surpass “Video Store” quality; Ranging from DVD quality to HD quality up to HD 1080p.

With such high demand for Streaming video and media content, some Corporate giants (MGM Studios, Universal Studios (more with citations later) ) Have chosen to join the market. Rather than only tackling illegal P2P file sharing subject-matter, MGM Studios et. al. have chosen to join in and release their TV episodes the same day/night that their show is released. It’s how I ran into my personal favorite Sci-Fi Episode of Stargate Atlantis.

After doing a Google Search for the latest episode of my favorite show, I found a link that appeared to be a legitimate and viable source of current media content… right on Amazon. I quickly purchased the previous episode I had missed (all for $1.84) and waited quietly and patiently for a couple of hours (at work mind you) until the airing of the next episode. As soon as the episode aired, it was published and released for $1.84 through Amazon. I was Ecstatic! I was watching the current episode that I would have missed, without having to set a record reminder at home on my DVR. Best of all, the quality of the video was significantly better.

Streaming media/video, especially illegal file sharing through torrenting, may have seemed like an insult and infringement of creative and commercial works (torrenting of course still is), but our Large corporate giants have caught on that, like it or not, the average busy professional who works 8-12 hour days, necessitate viewing relaxation on the go, (or at work such as myself… **Sshhh Don’t Tell, I won’t**). It may or maynot cut down on illegal file sharing, but it certainly is a start, and provides a viable means of obtaining the most current media content, online, and streaming to your PC or portable device. Now that is what I call A Streaming Video Store.

So to answer my own Question. “Did Video Stream Kill the Video Store?”

A: I think not. I believe it has only fueled the expansion of this market. Better to join the winning side, and cash in on the available market already in place, than to meet a costly stalemate, I say.

This is just a quick preview of my “Weekly Edition Post”… It’s also my first at WordPress. Time will tell what type of content will be appropriate for Posting, and certainly time will be my tutor in the Art of the Blog.

(More To follow in content, references, accuracies and editing)

Jerry Zambrano