1) Format (codec) for digital video (.avi) files that uses lossy compression. DivX was created by reverse-engineering the MPEG4 format. DivX is known for being able to create high-quality video with very small file sizes. The makers of DivX claim it can reduce a DVD to 10% of its original size and be virtually indistinguishable from the original.
2) Acronym for "Digital Video Express", the failed DVD rental format from Circuit City. They way it worked was once you "activated" the Divx DVD movie, it would lock you out after 48 hours, at which point you could unlock it for another 48 hours, or buy the full movie and unlock it permanently. Never really caught on, mainly because you could only play Divx movies on Divx-enabled DVD players.
1) "You should encode the movie with Divx so you get a small file with good quality"
2) "Haha, you actually bought a Divx player from Circuit City? What, were they out of Betamax players?"
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