The Good Old Times: VHS vs. Betamax

Videotapes. They are one of the best viewing formats while I was growing up. I could remember watching Tom and Jerry episodes, and rewinding the tapes over and over to satisfy my cartoon needs at that time. Of course, videotapes are obsolete now with the digital technology age. However, we should not forget the past as they were the king of all formats during the 1970s and early 1980s. It was during this time that VHS by JVC and Betamax by Sony battled each other to win the videotape format war. This week, I am going to take you down memory lane and revisit one of the best wars of all times.

As we all recognized, videotapes are played in VCRs (video cassette recorders) and they have existed since the mid-1950s. Video recordings were a big phenomenon back then, and their developments had plenty of compromise and competitions along the way. In 2006, videotape recorder turns 50. It is important to have a sense of history as the early days paved the way for consumers like you and me to view videos at our own pleasure. Not to stray off topic with all the history, but this is what made the videotape format war possible.

First of, let us take a look at both the VHS and Betamax. The VHS by JVC was first introduced to the mass in 1976, which was a year later than Sony’s Betamax (in 1975). By looking at this, Sony should have a year of time in advantage to market Betamax. Betamax’s technical specifications are also superior compared to VHS’s in its various categories. However, this was not to be as several missteps in strategy happened.

The demise of Betamax was caused by various factors. The most glaring aspect of its downfall was its rental price. VHS offered a lower price than its counterpart, and was more affordable to the public than Betamax was. At that time, rental machines were popular because people did not want to spend thousands of dollars for technologies that may become obsolete. By the time Betamax had a reasonable price; VHS already had the majority of market share. Sony was also reluctant to sign licensing agreements with film studios, and refused any sorts of pornography to be released in its system. Fewer titles meant more power for VHS, and it quickly became the standard of choice for the mass. This article shows why Betamax was a failure despite its superior technology.

Let this be a learning experience for companies today that you have to have both the technology, and the entire consumer support. On top of that, the lack of marketing efforts to reach and appeal the consumers did not help. Solely focusing on your own technology does not guarantee a victory, and it could certainly lead to the neglect of the end consumers. Even today, we almost have mirror image of what had happened back in the 1970s. Sony’s Playstation 3 had a terrible launch compared to its competitors. Although the result is still too early to tell, it looked to be heading the same direction as Betamax. Sony, will you ever learn?

Now that I have taken you back in time, what do you think should we take from this battle?Personally, I think that corporations have the same root altogether. Technology will change and evolve, but their business philosophies and culture will be the same. After all, companies are proud of their origins and they make the companies what they are today.