DivX is Ready For Its Sequel. Is Hollywood?

Tiny upstart DivX Networks–whose compression technology has long been associated with file-swapping–is hoping for a sequel as the tech partner of choice for film studios and consumer-electronics makers working to bridge the Net and television.

Aside from competition from Microsoft, DivX’s biggest hurdle could well be mending fences with content owners who have long equated its technology with Internet piracy.

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