Later this year, DivX plans to divorce itself of video sharing site Stage6 – which will emerge as an independent company. I think DivX discovered what the founders of YouTube have already learned… Video-serving bandwidth expenses add up quickly. Not to mention Stage6 provides content at higher resolutions than most sites. The DivX release:
We have two synergistic and fast-growing businesses that have distinctly different financial models. Stage6, which operates more like an entrepreneurial stage company, will require substantial additional financial investment to continue its dramatic traffic growth and realize its full potential. We are therefore taking steps to seek the appropriate platform for growth for this asset. As a result, DivX will be able to narrow its focus and drive its core strategy forward.
(via NewTeeVee)