DivX had a somewhat shady start as “DivX ;-) 3”, which is a hacked version of the Microsoft MPEG-4 v3 codec. Further, the installation of “DivX ;-) 3” usually overwrote the Microsoft MPEG-4 v1 and v2 codecs without warning. DivX 4 eventually came along, without any significant improvements, but it was legal. DivX 5 was the first major, legitimate DivX, with DivX 6.8 being the current release.
DivX is essentially an AVI codec, although DivX encoded AVIs can now use the .DIVX file extension. DivX creates high-quality files with small file sizes, but your audience must, of course, have the DivX codec installed.
DivX Profiles ensure playback on DivX certified hardware.