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DivX was the format that made internet video piracy — and later, legitimate video sharing — possible. In the early 2000s, when broadband was slow and storage was expensive, DivX compressed a DVD-quality movie into a 700 MB file that fit on a single CD-R. It was essentially a modified MPEG-4 Part 2 codec, and it changed everything about how people thought about digital video.
The .divx extension is the format's own container, though most DivX-encoded video was actually stored in AVI files. DivX-certified DVD players and Blu-ray players can play the format directly. The company later pivoted to DivX Plus (H.264-based) and DivX HEVC, but these are just standard H.264/H.265 in an MKV container with DRM.
Today, DivX is a historical curiosity. H.264 and H.265 do everything DivX did, better, at smaller file sizes. If you encounter a .divx file, VLC plays it without issue. For conversion to MP4, HandBrake or FFmpeg handle it cleanly.