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Betamax Story

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THE BETAMAX
Sony’s Betamax video recorders can be considered classic technology brand failure. According to Wikipedia, the Betamax (also called Beta) is a consumer-level analog videocassette tape recording format developed by Sony, released in Japan on May 10, 1975. The cassettes contain .50 in (12.7 mm)-wide videotape in a design similar to the earlier professional .75 (19mm)-wide, Umatic format. The format is virtually obsolete, though an updated variant of the format, Betacam, is still in use by the television industry.
Like the rival videotape format VHS (introduced in Japan by JVC in October 1976 and in the U.S.by RCA in August 1976), Betamax had no guard band and used azimuth recording to reduce crosstalk. According to Sony’s own history webpages, , the name came from a double meaning: beta being the Japanese word used to describe the way signals were recorded onto the tape, and from the fact that when the tape ran through the transport, it looked like the Greek letter beta (β). The suffix -max came from "maximum", to suggest greatness.[5] In 1977, Sony came out with the first long play Betamax VCR, the SL-8200. This VCR had two recording speeds: normal, and the newer half speed. This provided two hours recording time on the L-500 Beta videocassette. The SL-8200 was to compete against the VHS VCRs that had 2 or 4 hours of recording time.
No story on Beta would be complete without a discussion of the software aspects of the home video business.
In the late 1975, there was an incredible success of the movie rental business.
The first real home video software on the market began with Andre Blay’s Magnetic Video, which licensed fifty feature film titles from 20th Century-Fox in late 1977. Originally, full-speed tapes were offered for both Beta and VHS, along with BII for Beta, but by 1978 BII was dropped entirely. BII had become the dominant Beta mode, bringing with it a marginal loss in quality that infuriated Beta purists.
In the five years that followed, the video rental business enjoyed sky-high growth in sales. Hollywood executives rubbed their hands with glee, since this totally new market enabled them to make profits from films previously looked upon as worthless bombs. In the rental industry, home video ultimately transformed into a software-driven market: many consumers decided to buy VCRs simply to watch the latest films, and not for time-shifting. This caught a lot of people by surprise, Sony included. During this embryonic period, Sony made a token effort to keep the studios interested in offering all titles on Beta, but because of all the factors relating to the format’s hardware problems, dealers were more and more reluctant to stock Beta cassettes.
In 1982, Sony made an all-out push to convince the studios to get behind their newest bombshell: Beta Hi-Fi. They touted Hi-Fi’s many advantages over the low-fidelity split-track Dolby B stereo used in all VHS releases at the time. Sony officials smugly predicted that VHS would never be able to match their achievement because of subtle differences in signal processing between the two systems, and promised software firms that Beta Hi-Fi would be a hit. For a time, it was. Throughout 1983, Beta Hi-Fi was well-received by both dealers and the public, but perhaps because of the unexpected success of budget-priced VHS decks, Beta sales soon leveled off to their pre-Hi-Fi numbers. Less than a year later, JVC did the impossible: they took the wraps off their similarly-named VHS Hi-Fi system, which altered Beta’s design by using two extra video heads to record the FM audio signals. Once again, Sony was back to square one.
During the early 1980’s, Beta started a gradual decline in the software business. Duplicators began making drastic cutbacks on slave machines, with major companies like Bell & Howell installing 1000 or more VHS decks for every 100 Beta machines. Dealers began dumping pre-recorded Beta cassettes by the truckload, and happy Beta customers quickly snapped up these bargains, which were often sold for as little as $5 per cassette. But the Betaphiles’ glee was short-lived when they discovered, much to their chagrin, that most video stores had begun selling and renting only VHS software. In less than five years, pre-recorded Beta cassettes had become “the 8-track of the 80s” — a cruel misnomer, since 8-track cartridge’s demise was caused mainly by mediocre fidelity and an inferior technical design — but the ignorant label persisted in the consumer press.
With Beta orders dwindling, the Hollywood studios wasted little time in making a momentous decision: RCA/Columbia was the first to announce they would be cutting back on Beta releases. [Ironically, Sony bought Columbia Studios in 1990.] Henceforth, only the biggest box-office films would come out on Beta; older catalogue items and cult titles would be released only on VHS. Sony went through the motions of setting up a short-lived direct-sales campaign designed to help desperate customers order Beta But this soon became merely a conduit for music video releases, and Sony was later forced to release these titles on VHS, due to retailer demand.
By 1987, MCA made a similar announcement cutting back on Beta releases, but with less fanfare than Columbia. By 1988, this policy had become de rigueur for the industry, and the flood of Beta software had turned into a trickle. This forced many Beta owners to buy VHS decks strictly for movie rental, and indeed, most surveys showed that 90% of most Beta owners also owned at least one other VCR, usually a VHS deck. And without any software support, no average person would ever want to invest in a new Beta deck. As a software format, Beta was virtually extinct.
Looking back on Beta’s software problems, it’s difficult to say what Sony could have done to have overcome the inevitable. Someone with exceptional insight might have been able to predict what would happen with home video rentals back in the mid ‘70’s; we know we couldn’t. One possibility might have been for Sony to adopt the tactic tried by Cartrivision four years before: licensing several hundred movies and marketing them directly through Sony dealers. They might even have tried Cartrivision’s approach of sales-only and rental-only titles, using non-rewinding cassettes for the latter. It’s impossible to say for certain whether this might have worked during Beta’s infancy, but it could have at least established a foothold for a more expansive move into software as the years went on

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