The website never went beyond beta status, and was shut down by DivX Inc. on February 29, 2008 because of apparent inability to support Stage6 financially, or other officially unspecified reasons.

Co-founder and Executive Chairman Jordan Greenhall would be switching from his current role as CEO to manage the separating Stage6, which, if successful, was expected to be completed later in 2007.

Several thousand user accounts that were used to upload videos between December 7, 2007 and February 10, 2008, are thought to have been compromised by the attack[6] Approximately two and a half hours later, a site maintenance notice was put up by the Stage6 team.

[8] A day later than stated, Stage6 ceased to operate, directing users to a Veoh welcome page designed specifically for the purpose of receiving the Stage6 community.

[9][10][11] On March 11, 2008, DivX Inc. disclosed "significant costs" and "potential copyright litigation" as the primary considerations leading to the shutdown of Stage6.

However, after LiveUniverse made its first offer, DivX Board refused to engage in any direct dialogue for over five days, during which it shut down Stage6.

US$8 million per year), distributed with DivX Web Player, and gain extra profits from other deals with their investors.

Unregistered users could view and download to hard-drive all videos on the site, except those containing potentially offensive content.

These included: Stage6 also featured its own search engine profiling the videos by the user-generated tags and their popularity.

In December 2006, Universal Music Group (UMG) sent a cease and desist letter to DivX, Inc., notifying them that several of their videos had appeared on Stage6.