From the blog post:
In many ways, though, the service did succeed, beyond even our own initial expectations. Stage6 became very popular very quickly. We helped gain exposure for some talented filmmakers who brought great videos to the attention of an engaged community. We helped prove that it's possible to distribute true high definition video on the Internet. [...] So why are we shutting the service down? Well, the short answer is that the continued operation of Stage6 is a very expensive enterprise that requires an enormous amount of attention and resources that we are not in a position to continue to provide. There are a lot of other details involved, but at the end of the day it's really as simple as that.
According to a post on businesswire, Kevin Hell (DivX CEO) confirms the main idea in the blog post that Stage6 made them drift away from their main company objective. He also answers the big question content producers have been asking about what would happen to their work; even though the service will be stopped in a few days, this doesn't mean all the content will be lost :
"Our core business is to work with a wide variety of partners to give consumers a high-quality digital video experience on any device or platform," said Kevin Hell, CEO of DivX, Inc. "By no longer expending resources on Stage6, we sharpen our focus on creating a global standard for digital video while building a business that maximizes shareholder value. We will provide more information related the Stage6.com shutdown on our fourth quarter earnings call, scheduled for March 11, 2008."
Videos on Stage6.com will be available for viewing and download through February 28, 2008. The Company will work with certain content publishers to migrate content to alternative web distribution platforms.