It came hardly as a surprise this morning that Circuit City finally intents to cut its losses on their Digital Video Express subsidiary. As a result of unprofitable business and an unstable business model Circuit City today announced that it will cease marketing of the Divx home video system and discontinue operations.

I know many of you have been feeling very strongly about Divx, although its demise was easily forseeable from the first day it surfaced. We will now be able to witness exactly what happens what many of us had been predicting. Will current Divx owners be able to still view their movies or are they now sitting on a pile a garbage discs while the company shuts down operations?

According to a Divx spokesperson, registered customers will be able to view their discs during a two-year phase-out period, but fact of the matter is, the discs are worthless – maybe one can auction them off as relicts at EBay.

Divx also offers current customers a $100 cash rebate to all consumers who purchased Divx-enhanced players prior to June 16, 1999. Rebate forms will be available at www.divx.com, participating retailers, or by calling 1-888-639-DIVX.