Divx has been populated largely by digital pirates, p2p networks, and hackers. It’s still ahead of the mainstream market, so I wouldn’t write them off just yet. If they could get a cross platform capable DRM solution implimented divx could very well be the future of digital video, both professional and UGC. Just take a look at http://www.joox.net (warning – these are mostly pirated video assets) and look at the quality of these clips. The community is powerful, and contributive. The content, speed and capabilities are unmatched.

And the divx format works on almost all digital media players if you just change the .divx file extension to .avi. It’s as simple as deleting the extension and changing it to avi – and wham, all of this content lives on your avi capable player – including apple tv, ipod, zen pmp and more!

I wouldn’t write off the future because there isn’t traffic in the present. I would look at the capabilities, look at the interface, look at the early adopter trends and examine future prospects.

That being said, I think the biggest barrier to entry for Stage6 is the need to download software to watch their video. No matter how simple you make that process, many users either CAN’T or WON’T do it.

Just to let you know, you should look at stage6.com based on DivX.com for your alexa rating because it is actually stage6.divx.com.