I had all these mpg and avi movies that I had downloaded from the internet or transfered from TiVo(removing the propietary TiVo format) and then burned on CD-Rs. So I'm looking at these things and am like "I wonder what happens if I stick this in the DVD Player?" Voila! I'm watching it. Unbelieveable. Are DVD movies basically MPEGs? The player was a Phillips DVP642.
Read this info on DivX and I think you'll get a better idea of "why". http://en.wikipedia.org/wiki/DivX