Most people think of DivX as MPEG-4, but there was a movie rental system called Divx that failed.

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Divx is based on the same DVD-V media as DVD. Most discs produced were DVD 5 discs: single-sided, single-layered, for 4.7GB total capacity. The longer titles were DVD 9: single-sided, dual-layered with 8.5GB total capacity. Divx also uses the same MPEG-2 video encoding that DVD does. Contrary to popular myth, the images can be in wide-screen format enhanced for 16-by-9 TVs, and the discs can also contain special features like multiple languages and featurettes.

The discs differ greatly from DVD in their logical organization. Divx discs have only a small stub program in DVD format that informs a user who attempts to play it using incompatible hardware that the disc requires a Divx player. The rest of the disc contents are arranged in a proprietary format that makes use of 168-bit Triple-DES encryption (not to be confused with 56-bit DES encryption) instead of the weak Content Scrambling System of DVD.

Playing a Divx disc did not change it in any way; whether a disc was considered new, used, or unlimited play depended on its status in the player and the central billing system.

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