Scott Fish

Divx to spin off its Stage6 video-sharing site: Stage6, a site featuring user-created videos that uses technology from its publicly traded parent company Divx, has been growing so fast that Divx has experienced a sharp up-tick in operating expenses, lowering its overall operating income.

So San Diego’s DivX will spin out Stage6, which will now seek venture funding. Unique visitors to Stage6 numbered 10 million in June, up from four million in April. DivX, meanwhile, focus on its core business of licensing high-resolution video creation technology to device manufacturers — TV makers, mobile phone companies and others. The Divx “codec” or video compression-decompression software library, has been downloaded over 220 million times since the start of 2003, including 70 million times in the last 12 months, the company said in a statement.