Tuesday, February 26, 2008

American corporation DivX, Inc. announced on Monday that it will shut its Stage6 website that hosts videos made by users. The shutdown will take effect on February 28, 2008 and is because the firm no longer have the resources to keep it online.

“Why are we shutting the service down? Well, the short answer is that 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. There are a lot of other details involved, but at the end of the day it’s really as simple as that,” said Tom, who is also known as ‘Spinner’ in the statement on the website and an employee of DivX, Inc. the San Diego, California-based host of the webservice.

In October 2007, Universal Music Group filed a federal lawsuit against DivX, Inc. for copyright infringement after users posted hundreds of music videos on Stage6.

Chief Executive Kevin Hell said in a statement: “By no longer expending resources on Stage6, we sharpen our focus on creating a global standard for digital video.”

Videos can no longer be uploaded, but will be able to be watched and downloaded until February 28. Stage6 made its debut in 2006. It hosted movie clips, television shows and music videos along with content made by the site’s users in the popular DivX codec.