DISC'S VERSATILITY CAUSING AN UPROAR.

Byline: The New York Times

It's still early for the digital video disc, or DVD, but already the 5-inch sphere with a movie on it is displaying both versatility and a continuing power to start a ruckus.

In terms of capacity, the disc's capabilities are startling. Among its scheduled November DVD releases, Polygram lists ``Kalifornia,'' a modestly regarded road movie starring Brad Pitt, Juliette Lewis and David Duchovny. On this disc, though, viewers will get four versions of the movie: the R-rated ``Kalifornia'' in standard VHS and wide screen and the unrated ``Kalifornia'' in the two formats. That may be more than enough ``Kalifornia'' for most people, but four movies on one CD is a packaging concept.

The same could be said for DIVX, short for Digital Video Express System, a planned variation of DVD developed by the Circuit City electronics chain. DIVX, which has just been announced and isn't scheduled for distribution until next year, would essentially change the rules of DVD as formulated by those studios and other companies that have just begun to market CD movies.

At present, DVD's are intended to be sold primarily at a price of about $25 rather than rented, though rental at around $3 is an option. DIVX, by contrast, is designed basically for rental, though purchase also is encouraged. To begin the transaction, the customer buys the disc for $5, which serves as a rental fee for 48 hours. If one wants to keep it permanently after that time, there is an additional charge, possibly $15 to $20.

Users register their choices and are billed via a set-top player connected by modem to the DIVX system. The player will cost on average from $100 to $200 more than standard DVD players ($600 and up).

After the initial $5 transaction, the video store or other outlet drops out entirely. In fact, the most striking feature of DIVX is that if the disc isn't kept, it is thrown away. It doesn't have to be returned to the store.

One might wonder about the purpose of such a system, especially when consumers are just getting acquainted with basic DVD. Pros and cons are complicated, and many details remain to be clarified.

Advocates of DIVX also say there is greater protection against piracy, a fiercely argued subject that delayed standard DVD for an extended period. ``The DIVX encryption system is extremely robust,'' said Larry Pesce, manager of DVD products for Thomson Consumer Electronics, which makes DVD players and will make Divx devices.

Many elements of the plan have started an uproar in the video industry. DVD and DIVX players and discs are incompatible in most respects, a dangerous position for a new technology trying to gain a foothold.

Critics of DIVX also regard the throwaway feature as an assault on packaged videos by those who would have movies sent home by other means in the future.