The future of DVD’s may well be in jeopardy due to a small, very exciting innovation that was just demonstrated at the Sierra Nevada Innovation Challenge in northern California. The muvichip, made by start-up company Flixchip, is a thin, credit card sized plastic card with a USB port. This simple device can slip easily into a pocket with room to spare.

Each of these colorful cards hold one movie, which is viewed by inserting a thumbnail-sized magnetic chip with a circuit board into the card’s USB slot. This lets you stream the movie to up to 4 devices at a time on any type device – an iPhone, iPad, Android tablet or laptop. It just requires a password to access it.

The muvichip goes into production next month and is slated to be in several not yet named large national retail stores in the U.S. in late August. Prices should be comparable to DVD’s and the company plans to introduce an expanded version – the muvifi Plus – which will have 6 ports that lets 6 devices access and play 6 different movies at the same time! That version will include Blu-ray as well as standard DVD quality playback. With something so small to have something so top quality, where does the line form?