Divx To Shut Down Stage6

The Web video portal shakeout continues: DIVX will shut down Stage, its would-be YouTube rival, to focus on its video encoding software/licensing business. The company tried to sell/spin off the site last July, but couldn't find a buyer. Instead it will shutter the service on Thursday.

Why? Because unless you can reach massive scale, which Stage6 didn't, hosting Web video is a money-losing proposition. "The continued operation of Stage6 is a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide," the company said this morning on its blog.

emily | 5:44 PM | Technology |
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