The pay-as-you-go DVD system will no longer be sold or supported, despite a prospective deal from Blockbuster

By Michael Giltz
Updated July 09, 1999 at 04:00 AM EDT

Divx is dead. But the pay-as-you-go version of DVD launched one year ago might have survived if Blockbuster had had its way. Sources familiar with the negotiations say the video retailer was set to buy a stake in Divx and later purchase it outright, but the deal was kiboshed by two of the six studios that provided films to the format. Josh Dare, a Divx spokesperson, says the 200,000 consumers who bought Divx players will get a $100 rebate, can still use the Divx function for two years (if they’ve registered), and, best of all, can play DVD titles on their players forevermore.