The real issue with DIVX wasn't the rental/PPV model, it was certain studios who were boycotting DVD, due to poor DRM security. (Which they eventually 'patched'

The real issue with DIVX wasn't the rental/PPV model, it was certain studios who were boycotting DVD, due to poor DRM security. (Which they eventually 'patched' legally.) So it was imperative that DIVX failed to avoid a format war.