Stage6.com closing its doors
This coming Thursday, February 28th, will signal the closing of video sharing service, Stage6.com.
DivX Inc., creators of the website have today decided to "cease operation of the site and focus its resources on the Company’s core DivX technology licensing business while also continuing to power the distribution of DivX video content on third-party sites".
The news is somewhat surprising as the video sharing website has proven to be increasingly popular since its 2006 launch. What makes Stage6 stand out from similar services such as YouTube, is DivX's commitment to quality by allowing contributors to upload movies at high definition resolutions of up to 1080p.
However, the steady growth of the website and the high quality nature of the content surely resulted in mammoth bandwidth and storage costs - a problem which could well be one of the reasons for DivX's decision to shut down the service.
Kevin Hell, CEO of DivX, Inc said:
"Our core business is to work with a wide variety of partners to give consumers a high-quality digital video experience on any device or platform. By no longer expending resources on Stage6, we sharpen our focus on creating a global standard for digital video while building a business that maximises shareholder value. We will provide more information related the Stage6.com shutdown on our fourth quarter earnings call, scheduled for March 11, 2008."
The ability to upload movies has already been removed and users will be able to view and download movies until Thursday.
Tom, a Stage6 user and DivX employee, has also posted an official statement on the official Stage6 Blog. Within 4 hours of the statement being published, nearly 1500 comments have been left.
In May 2007, HEXUS.lifestyle's Bob Crabtree put Stage6.com through its paces and highlighted some inherent shortcomings.
Official press release: DivX Announces Plans to Shut Down Stage6.com
Related reading: HEXUS.lifestyle - Review : DivX Stage6 (beta) - the high-def rival to YouTube
