The story
Cdigix was founded initially as Cflix, a college campus test pilot for major studio movie rentals. The company soon shifted gears to a music subscription service and later "introduced" the online movie service featuring video content from major studios and distributors. In 2002, Cdigix launched the music subscription service Ctrax as a response to the widespread illicit file sharing on college campuses. This coincided with the record and film industries' campaigns against such actions. Starting with Duke University, Cdigix eventually provided 75 universities and colleges music service for their students. At one point, Ctrax carried more than two million songs from every major label. Due to Cdigix servers being deployed within campus networks and the introduction of fiber enhanced school networks, on-campus downloads were blazingly fast. Complaints about the lack of iPod support from college students led to a waning interest in the service as the iPod gained mass distribution. On the contrary, student owners of Microsoft compatible MP3 players often responded positively.
Cdigix "quietly ceased operations" at the end of December 2008, with a "lack of clients and an inability to raise money to continue" as its main reasons for dissolving. The president and COO of Cdigix, Mark Brodsky (now at Deltak edu), also mentioned the poor economic situation playing a large factor in the company's decision to end all operations.
From Wikipedia’s article on Cdigix, shared under CC BY-SA 4.0.4