Incompetence of DivX Owners Killed the Goose that Laid the Golden Egg: Stage6

There seems to be more than meets the eye behind the Stage6 closure than I had assumed in my previous two posts.

Far from a money-losing concern, Stage6 was apparently making DivX millions of dollars. Stage6 required the installation of a player, and along with the installation, users were offered the option of installing a Yahoo toolbar. Apparently, DivX was earning millions from their deal with Yahoo for this. However, infighting among the DivX owners over what to do with Stage6 led to the resignation of the key people running Stage6. Left without anyone competent to take the reins, the site had to be closed down.

The DivX Inc stock has also taken a nosedive. And it’s a pretty dramatic plunge too.

Filed in Opinion, Software.

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4 Responses to Incompetence of DivX Owners Killed the Goose that Laid the Golden Egg: Stage6

  1. […] Upate: more info about the closure in my follow-up post Incompetence of DivX Owners Killed the Goose that Laid the Golden Egg: Stage6. […]

  2. Llama says:

    It is good to read the facts when a blogger gives you something that doesn’t make sense.
    Why shut it down if it is making millions?
    Why would you think downloading one optional toolbar could pay for dozens or even hundreds of GB of bandwidth?
    At most the site generated about 5 million (perhaps less) in revenues against 13.7 million in costs. That is publicly availiable knowledge filed with the SEC.

  3. florafaunarocks says:

    For completeness, for those reading this entry, the SEC filing is accessible through clicking through Llama’s name above.

  4. […] Is this wierd or not? This continues the mystery that began with rumor that they were making millions from the Stage6 site at the time they closed. […]

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