DivX was a video format that used digital discs that were the same size as DVDs. However, your DivX player had to have a dedicated phone line connected to it because, when you placed a DivX disc in the player, it called through to a service that would then record the first time you played the disc and you were then given a grace period of something like a week in which you could watch the movie. Then, your "subscription" to this particular movie would expire and the disc would be effectively null and void. You were given an option to purchase a permanent permission to watch the movie, however, you could only use the disc then on that particular player. Couldn't loan to friends or even play it on a player in another room. Yes, the discs were cheaper than DVDs (something like US$5 per disc), but if you went to watch it once and never finished and your time expired, you were screwed. At least at Blockbuster, you can just pay a late fee. Not with DivX.