In reply to:
You would feed the parent company your credit card, and every time your kid wanted to watch "Free Willy" again, cha-ching, another $2.50 gets deducted. (Or whatever the charge was going to be.)
Or you could pay $19.95ish to unlock the movie forever. And everytime you paid, you got a timelimit, not specificially pay-per-view. The thing that did make me mad was the fact that Disney was thinking about only releasing DIVX movies, and not DVD's. It wouldn't have been $2.50 a pop, but the fact that the movies would only be out on a format playable in one machine was bad.
I disliked Divx for certain reasons. Many people against it had this notion you always had to pay each time to see your movies though. That probably helped the downfall, so I guess that rumor was useful.