It appears they are the leading truly independent player, as a phone company who would you like to use, the market open independent leader, a proprietary codec like Apple, or some new company.

Thanks for the complement, and Jae for his posting.

PS What is VIC?

I agree that the stock is at a decent valuation because of all their cash, but I’m not convinced about the future. Why is their software going to be a better codec than others to work on multiple platforms? Is it a benefit to have something that works cross platform anyway? I mean, it seems like the resolution and bandwidth available wirelessly is going to remain substantially less than a wired connection for the forseeable future and so distributors will probably have to encode the video files differently anyway, so maybe it won’t be an issue for them to use multiple codecs. In addition, the resolution available on smaller portable devices is very different than on a desktop, so we don’t need the same quality as we do on a desktop.

Randy – on a personal note, I want you to know that your analysis was very good. You should submit it to the VIC if you haven’t already. I’m just poking at it because I’m intrigued by the opportunity

Adobe, Apple are dominate on the PC, and you should always add Microsoft, but DIVX plan is to have one codec fit all devices, so they are pushing hard into cell phones after a large share of DVD Players accepted them. (You might say they are taking a different path). In cellphones is where Apple is more dominate, but many competitive device manufactures are fighting Apple for total unit volumes and don’t want to support their services or apps.

Jan Jin Thanks for the post.

Randy Durig

I thought divx made money by selling software rather than hardware. Divx has been around for a long time, but I dont think it has much power in the real world. So many other encoders out there and most hardware these days already support all the codecs.

Also, just so I know, they make their money on having their technology used in hardware applications, and not software, right? As in, if I download a movie encoded with DivX, they don’t really make money there, right?

I like that the stock is mostly valued for the cash, but it’s still hard to say if it’s worth it because if their technology isn’t used in the future, it could cause revenues to decline and even burn cash.

6 UMG lawsuit