I’ve written a lot in the past about webvideo sites and how they can’t succeed with so many similar sites on the web (possibly more than 150). Then I saw more news about these YouTube/Veoh/Blip/DailyMotion copycats getting some serious VC. I thought I may have been wrong.
Then I saw this story about DivX’s announcement to spin off Stage6, their high def video player site. It’s getting expensive to house these videos and make some money off this stuff.
[T]he move was driven by a desire to decrease operating expenses, as Stage6 requires a lot of capital, especially as it gets more popular. The public company DivX will now resume its focus on higher-margin business of licensing consumer electronics makers to use its codec.
Check out the post on NewTeeVee.
Then read the DivX press release about spinning off Stage6. Is the house of cards starting to crumble? Is this the beginning of the end?