Posts Tagged: "Betamax"

The Last VCR: The final punctuation on the rise and fall of old-school home video

Reports from Japanese media indicate that Osaka-based Funai Electric (TYO:6839) will cease production of videocassette recorders (VCRs) by the end of the month. The company cited a few issues such as a difficulty to source parts and dwindling sales which dropped to 750,000 units in 2015; at its peak, Funai was selling 15 million VCR units per year. The death knell for videotape technologies has been sounding for some time. Last year, Tokyo-based electronics conglomerate Sony Corp. (NYSE:SNE) announced its decision to discontinue both Betamax videocassettes and Micro MV cassettes used for recording. The Video Home System (VHS) standard suffered a significant blow in 2008 when the last major VHS distributor discontinued sales. Although few are bemoaning the loss of videotape thanks to the convenience and higher quality of discs and VOD, production of the world’s last VCR turns our focus backwards in time to see the rise and fall of this early home video technology.

Steve Brachmann

July 30, 2016

Inventions Make a Standard Competitive

When a standard faces competition, it is essential to be the first on the market with products and to establish the highest market share. The network effect will make it increasingly difficult for competing standards to get a foothold. Two competing standards will, therefore, be under pressure to gain market share in the early stages of adoption by getting to market first, with superior performance, and with the lowest price. In view of the network effect, getting to market first is usually the highest priority. But in the early stages of adoption, being a little bit later with superior performance is still viable.

Menno Treffers

May 15, 2016