This is DIVX:

http://en.wikipedia.org/wiki/DIVX

It was a scheme at DRM that required the system to check in with home frequently.  Sorry, but the XBox One reminds me of this.  This is to the extent, I end up saying DIVXBone at this point.

Looks at who tried it... Circuit City... Microsoft better hope they don't end up like Circuit City.

I worked at CC when that was initiated. It failed horribly and was a direct cause in CC collapse.

Odd as I thought it was a decent deal back the as movies were only $5 and that was before netflix or red box.

Big difference though as divx was pure rental or pure ownership. Xbox is pure limited ownership.

Thanks, I always wondered what that 'other' DIVX was all about. What a terrible idea.

Mucking around with the concept of what ownership is, is usually not a good idea.  The electronic entertainment industry, with the going digital, has been able to get things in place by pandering to the laziness of people, by making things easier ofr them to do.  

And here is another history piece on DIVX:
http://www.the-doa.com/Pages/DoaDivxHistory.html

It ended up being thought up by a law firm.