Videotape format war

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The videotape format war was a period of an intense format war of rival incompatible models of video cassette recorders in the late 1970s and 1980s. It has gone down in marketing history as the classic example of this kind of market competition.

Home video cassette recorders became available in the early 1970s like the VCR system from Philips in 1972, however the first system to be successful was Sony's Betamax. This was quickly followed by VHS (Video Home System) from JVC, and later by Video 2000 from Philips.

Manufacturers also introduced disc-based systems called Capacitance Electronic Disc (CED) (aka videorecords) and LaserDisc. Neither of these disc formats gained much ground, since neither could record consumers' favorite TV programs; however, they did hold small niche markets. CED's inexpensive record-style format made it attractive to low-income families during the 1980s, and LaserDisc's 5 megahertz/420 line resolution made it popular with discerning videophiles until circa 1997 (when DVD became the new standard for high-quality).

Sony had demonstrated a prototype videotape recording system to the other electronics manufacturers in 1974, and expected that they would back a single format for the good of all. But JVC in particular decided to go with its own format (despite Sony's appeal to the Japanese Ministry of Trade and Industry) and the classic format war began.

Contents 1 Competing technologies 1.1 American market 1.2 Picture quality 1.3 Europe 2 Market share 3 End of Betamax 4 References 5 See also 6 External links

[edit] Competing technologies

According to James Lardner's 1987 book, "Fast Forward: Hollywood, the Japanese, and the Onslaught of the VCR," Sony had met with Matsushita execs sometime in late 1974/early 1975, to discuss the forthcoming home video market. They had previously co-operated in the development and marketing of the "U" format videocassette, with Sony marketing under the U-Matic brand. Sony laid their cards on the table and brought along a Betamax prototype for Matsushita's engineers to evaluate. Sony at the time was unaware of JVC's work. At a later meeting, Matsushita, with JVC management in attendance, showed Sony a VHS prototype, and advised them it was not too late to embrace VHS "for the good of the industry." Sony management were too close to production (and, one could argue, too proud and arrogant) to compromise, and felt their generosity had been taken advantage of. Thus, the stage was set for a battle between Sony and Matsushita in the arena of home video.

[edit] American market

The first battleground was recording time. The original Betamax video recorder for the NTSC television system could record for one hour, identical to the previous Umatic format, which had been sufficient for use in television studios. JVC's VHS could manage two hours, because of larger cassettes and slower tape speed, however the entrance of RCA into the market sparked a mini-war to see who could achieve the longest recording time.

RCA had initially planned a home video format around 1974, to be called "SelectaVision MagTape," but cancelled it after hearing rumors about Sony's Betamax format, and was considering Sony as an OEM for an RCA-branded VCR. RCA had discussions with Sony, but RCA felt the recording time was too short, insisting that they needed at least a 4-hour recording time (reportedly because that was the length of an average televised U.S. football game). Sony engineers knew that the technology available to manufacture video heads wasn't up to the task yet, but halving the tape speed and track width was a possibility. Unfortunately, the picture quality would be degraded severely, and at that time Sony engineers felt the compromise was not worthwhile.

Soon after, RCA met with execs with the Victor Corporation of Japan (JVC), who had created their own video format, christened "VHS" (which stood for "Video Helical Scan" and later "Video Home System"). But JVC also refused to compromise the picture quality of their format by allowing a 4-hour mode. Ironically, their parent corporation, Matsushita, later met with RCA, and agreed to manufacture a 4-hour-capable VHS machine for RCA, much to JVC's chagrin. In response, Sony would introduce an "X2/Beta-II" speed of 20 mm/sec for a "2 hour Betamax." This led to confusion in the market, as some decks only recorded in BII, and others didn't even play BI tapes. Later models would have the capability to handle a thinner tape that ran for 90 minutes in BI mode, but many decks only recorded in BII. Sony would later make BI playback standard, but for a time that capability was absent on many Sony models. Another Sony innovation was the "BetaStack", an accessory for certain models that allowed multiple recordings on multiple tapes, that could load and eject cassettes automatically.

Recording time was everything, with Beta eventually managing 5 hours at BIII (13.3 mm/s) on an ultra-thin L-830 cassette, and VHS eventually achieving 10.6 hours with SLP/EP on a T-210 cassette. Slower tape speeds meant a degradation in picture quality, but the consumer didn't seem to mind. From the consumer perspective, buying a single 8-hour VHS tape for $5 was cheaper than buying two 4-hour Betamax tapes for $10.

[edit] Picture quality

When Betamax was introduced into Japan and the United States in 1975, its Beta-I speed offered a slightly higher horizontal resolution (250 lines vs. 240 lines horizontal NTSC), lower video noise, and less luma-chroma crosstalk than VHS, and was marketed as providing pictures superior to VHS's playback. However the introduction of B-II speed (2-hour mode) to compete with VHS's 2-hour Standard Play mode, reduced Betamax's horizontal resolution to 240 lines. ^[1] The extension of VHS to VHS HQ produced 250 lines, so that overall a Betamax/VHS user could expect virtually identical luma and chroma resolution (30 lines across), wherein the actual picture performance depended on other factors, including the condition and quality of the videotape, and the specific video recorder machine model.

[edit] Europe

For PAL versions time was less of an issue. Betamax's longest tape (L-830) could record for 3 hours and 35 minutes, compared to VHS's 4 hours. For the European markets the issue was one of cost, since VHS had already gained dominance in the United States (70% of the market), and the large economy of scale allowed VHS units to be sold at a far lower cost than the more-rare Betamax units. (See market share below.)

In the mid-to-late 80s, both formats were extended to Super Betamax and Super VHS. Super Betamax offered a slight improvement from 250 to 290 lines horizontally, which could make near-identical copies of broadcast or cable television. Super VHS offered up to 420 lines horizontal (in modern digital terms, 560 pixels edge-to-edge) that surpassed broadcast-quality and matched the quality of laserdiscs. Unfortunately both of these formats were largely ignored by consumers who seemed content with the fuzzy lo-res pictures provided by standard VHS, and few consumers bothered to upgrade. The "super" standards remained expensive niche products for a small minority of videophiles and camcorder hobbyists.

[edit] Market share

When home VCRs started to become popular in the UK, the main issue was one of availability and price. VHS machines were available through the high street rental chains such as Radio Rentals and DER, while Beta was seen as the more upmarket choice for people who wanted quality and were prepared to pay for it. By 1980, out of an estimated 100,000 homes with VCRs, 70% were rented, and the presence of two competing formats meant that renting was an even more attractive choice, since a small fortune (about £2000 or $2600 in today's prices) could be spent on a system which may become obsolete. By the time Betamax machines became easier to rent, VHS had already claimed 70% of the market.

Within continental Europe there were three choices by 1980, with the arrival of the Video 2000 format from Philips and Grundig, which replaced Phillips' outdated "VCR" format. Although featuring capabilities that were ahead of their time, V2000 had a long development cycle and arrived late to the market. Players were found to be less reliable than their VHS and Beta counterparts, and the format never gained substantial market share. V2000 was cancelled in 1985, the first casualty of the format war.

Many theories regarding why Sony's Betamax failed have arisen over the years. One of the more amusing (and false) is that Sony refused to allow pornographic material on their system. A quick perusal of the Betamax library reveals that adult entertainment was readily available. For example, Playboy Industries released their videos in a dual format, both Betamax and VHS, for most of the 1970s and 80s (and can be confirmed with a quick search through eBay's adult section, or other used video markets). Second, the adult industry is too small to have any lasting impact on standards selection. According to Forbes.com, adult video income is approximately $1 billion. "The industry is tiny next to broadcast television ($32.3 billion in 1999), cable television ($45.5 billion), the newspaper business ($27.5 billion), Hollywood ($31 billion), even to professional and educational publishing ($14.8 billion). When one really examines the numbers, the porn industry — while a subject of fascination — is every bit as marginal as it seems at first glance." ^[2]

The outcome was decided by other more-important factors such as longer home-recording time (up to 10.6 hours on a T-210). From the consumer perspective, buying a single 8-hour VHS tape for $5 is cheaper than buying two 4-hour Betamax tapes for $10. Although Betamax initially owned 100% of the market in 1975, the perceived value of longer recording times eventually tipped the balance in favor of VHS. By 1981, U.S. Betamax's sales had sunk to only 25% of all sales. As movie and video studios turned away from Betamax, the combination of lower market share and a lack of available titles strengthened VHS's hand. ^[3] In the UK, Betamax held a 25% market share, but by 1986 it was down to 7.5% and continued to decline further. In Japan, Betamax had more success and eventually evolved into Enhanced Definition Betamax with 500+ lines resolution (DVD quality), but eventually both Betamax and VHS were supplanted by laser-based technology. The last Sony Betamax was produced in 2002.

[edit] End of Betamax

Betamax sales dwindled away and VHS emerged as the winner of the format war — despite being the least sophisticated of the three main rivals. VHS benefited from continuous development from multiple manufacturers (including Sony) over the years, and innovations such as high speed picture search, Hi-Fi stereo sound and fast-load tape mechanisms saw it keep pace with and eventually surpass Betamax.

When it became clear that Betamax had lost the video format war, controversy switched from which technology was better to why VHS had triumphed so completely. The video format war is now a highly scrutinized event in business and marketing history, leading to a plethora of market investigations into why Betamax failed. As mentioned above, Sony was first to release their format, but was followed only a year later by JVC and their affiliates.

Sony, being the first producer to offer their technology, thought it would establish Betamax as the leading format. This kind of lock-in and path dependence is exactly what economists point out as the Betamax weak link (Liebowitz, 1995).

What Sony didn't take into account was what the consumers wanted. Sony believed that having better quality recordings was the key to success, whereas it soon became clear that consumer desire was focused more intently on recording time and compatibility for easy transfer of information (Besen, 1994). The video recording market was an unknown when VCRs first came on the market; as such, Sony and JVC were both developing technologies that were unproven. As a result of the desire to get into the marketplace faster, the firms both spent less time on research and development, and tried to save money by picking a version of the technology they thought would do best without really exploring all the options (Cowan, 1991). This is why there was more than one format on the market and why they continued to reinvent them with longer playing times and better quality.

In 1988 Sony began to market their own VHS machines, and despite claims that they were still backing Beta, it was clear that the format was dead -- at least in Europe and the U.S.. In parts of South America, Beta continued to be popular, and in Japan, the format was developed into ED-Beta and SuperBeta, and was still produced up to the end of 2002. The rise of DVD finally took away the niche market that Betamax had survived in during the 90s, giving the home format a total lifespan of 27 years.

Today, the only remaining aspect of the Betamax system is the slang term 'Betamaxed', used to describe something that had a brief shelf life and was quickly replaced by the competition. Despite the failure of Betamax, its technological successor, the Betacam tape would become an industry standard for video recording, production and presentation, and continues to be used to this day, only now beginning to be supplanted by direct hard drive storage of video.

After the videotape format war the major electronics corporations agreed on a single standard for DVD in December 1995, but a format war resulted from a failure to agree on a single standard for DVD's high-definition successor in May 2005 ^[4].

[edit] References

[edit] See also

• Videocassette recorder
• Betacam
• Peep search A picture search system pioneered with Betamax and available on most video formats since.
• Comparison of high definition optical disc formats

[edit] External links

• Why VHS was better than Betamax - Guardian Limited Onlineko:비디오테이프 표준 전쟁

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