DivX poorly run from the start
The article should have mentioned the conspicuous failure of DivX to become the defacto standard for web-embedded video, losing out to Flash. Stage6 failed partly because it was all DivX format.
The guys running DivX have done a pretty poor job and lost a lot of mindshare early on with dishonest dealings with the open source community which culminated in the creation of a truly open source rival, Xvid. (Check out the Wikipedia entries on DivX and Xvid.)