Representatives of DivX Networks say they think they can win people over with quality. Many DivX movies now circulating through the underground cut out halfway through the download. Whether or not DivX succeeds in becoming the standard, make no mistake, copy-protected Hollywood content will soon be coming to a screen near you. Sony Pictures Entertainment plans to start distributing movies online this year and other studios will follow, says the MPAA's Jack Valenti. After several failed starts, Hollywood has begun to believe that the Net is ready for the big time.
Studios now believe that there is a market online for entertainment, specifically movies.
Valenti says that the industry holds no grudge against DivX for spawning widescale movie trading. Once we get encryption, DivX becomes a wonderful ally. The faster we can get it to customers, the better off we'll be. If the music industry had created something that offered all their songs for a fee, people would have flocked to it. Instead, they waited too long and paid the price.