Stage6 was a popular and widely-respected video hosting site, one of the first to offer full, high-definition video. Launched as a showcase for the Divx compression standard, it wasn’t designed to be a money-maker, but after it got a lot of attention the company apparently decided to spin it off, and Divx co-founder Jordan Greenhall took it over with some staff from the company and prepared to launch with financing from VCs and other investors. And then the train seemed to leave the tracks.
Despite the fact that the spinoff would bring in revenue for the company, and get the cost of streaming all that HD off its books, Divx apparently decided at some point to cancel the deal and keep Stage6 in-house. Now, even more inexplicably, they are shutting it down — presumably because it was costing too much money to run. What a waste. It’s possible that Stage6 might never have actually made it as a business, but to yank people (and investors) around like that is a pretty childish way to run a company. Whoever is responsible should be ashamed.