FAILDEX失樂園
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stage6

The business, the turning points, and the decisions behind them.

Founded2006
Event year2008

01 / WHAT IT BUILT

What the company did

Stage6 was a high-definition video sharing website run by DivX, Inc., launched in public beta in 2006. Unlike YouTube, it let users upload very large, high-quality video files encoded in DivX and Xvid codecs, which could be downloaded easily and played back on over 70 million certified devices from major manufacturers. By early 2008 it had over 17 million monthly unique visitors and 360 million page views, beloved by users and praised by journalists for its 'stunning video quality'. DivX shut the site down on February 28, 2008.

02 / stage6 FAILURE REASONS

Failure reasons

DivX said continuing Stage6 required operating expenditure, management attention and resources it could no longer provide. The supported reason is the service’s unsustainable resource burden, not an assumed finding about piracy.

03 / EVENT HISTORY

Events in the structured record

  1. Service launched

    DivX, Inc. launched Stage6 in public beta as a high-quality video sharing site for large DivX/Xvid-encoded files.

  2. Spin-off attempt, UMG lawsuit

    In July 2007 DivX explored spinning Stage6 off as a separate company; in October 2007 Universal Music Group sued DivX for copyright infringement over music videos posted on Stage6.

  3. Shutdown

    On February 25, 2008 DivX announced it would shut down Stage6 because it could no longer provide the attention and resources required - huge bandwidth and hosting costs made the site financially unjustifiable; the site went offline on February 28, 2008, directing users to a Veoh welcome page.

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    On February 25, 2008 DivX, Inc. announced it would cease operating Stage6.com on February 28, 2008, after an exploration of strategic options (spin-off or sale) that began in July 2007 produced no deal.

  2. 02

    The company said the site's huge hosting and bandwidth costs could not be financially justified; an October 2007 Universal Music Group copyright-infringement lawsuit over music videos on the site added legal pressure.

  3. 03

    The site was shut down for good on February 28, 2008 (some records say February 26 announcement), directing the community to a Veoh welcome page.