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.
Tuesday, April 17, 2007
Friday, April 6, 2007
Digital Video Compression: A Four Way Brawl, Or Is It?
With a new week, comes another topic. Hello all, and pleased to have you on board for another go in the format war train ride. The topic this week is the digital video data compression format war. Most of us are familiar with the big four formats involved: Windows Media Video (WMV), QuickTime, RealVideo, and DivX. Of course there are others, but these four are the main players. This time, it is truly a party with four players trying to knock each other out. Or will someone else be able to crash the party?
I am sure that we all have used at least one of the mentioned products before to play a movie or listen to a song in our laptops or desktops. Most of us do not notice about the type of files or players being used as long as they deliver the desired contents. Except for technical specifications, digital compressed formats seem to have similar outputs. Here, you can see the various compression formats available including the big four. Based on those descriptions alone, I doubt that any of us have any preferences one over the other. This is where the problem lies when trying to decide a winner of this specific format war. It will be hard for customers to choose which one is the best and declare a winner.
Price is a non factor in the equation. All of them give consumers the option of free trials or buying one straight away. Consequently, the purchased proprietary licensed ones will have more functions than the free trials. Choosing one product over the other is entirely up to the customers, and it seems like we have an equally distributed market share. All the big four corporations have still gone strong until today.
Brand names may come into play to influence the customers. Microsoft’s Windows Media and Apple’s QuickTime might have an advantage over the others. However, as more and more people are becoming technology-savvy, the brand name factor is not going sway the momentum to Windows Media and QuickTime. RealVideo and DivX offer the same qualities, and they are continuing to build their respective brand images in the digital media industry.
Remember what I have mentioned in the beginning about a party crasher? Well here comes one. Adobe’s Flash might be the future of digital media compression. Look at Youtube or Google Video and how much success those two have had. In fact with the abundance of social network sites out there, people wants thing fast, cheap, and innovative. So far, the big four have not come up with a solution to stop this rampaging bull. If this trend keeps on going, Adobe’s Flash format may just come out of nowhere and just steal the show. This article shows us how the Flash player is quickly becoming the standard for digital media, and why it will eventually take over from the big four. (If you are interested, there is a second part to this article).
In the end, I think that Microsoft, Apple, Real and DivX are becoming victims of the constant advancement in technology as well as the people who are using it. Their products have not changed much from the day of their respective launches. Sure there have been upgrades in terms of functions and fixed-bugs, but they have not taken into account the human part in technology. It is the people who are using technology, and they do not want the same old thing over and over again. Adobe Systems and its Flash player are at the right place at the right time. It offers convenience to the growing internet population, and with that, they may have just won the war.
I am sure that we all have used at least one of the mentioned products before to play a movie or listen to a song in our laptops or desktops. Most of us do not notice about the type of files or players being used as long as they deliver the desired contents. Except for technical specifications, digital compressed formats seem to have similar outputs. Here, you can see the various compression formats available including the big four. Based on those descriptions alone, I doubt that any of us have any preferences one over the other. This is where the problem lies when trying to decide a winner of this specific format war. It will be hard for customers to choose which one is the best and declare a winner.
Price is a non factor in the equation. All of them give consumers the option of free trials or buying one straight away. Consequently, the purchased proprietary licensed ones will have more functions than the free trials. Choosing one product over the other is entirely up to the customers, and it seems like we have an equally distributed market share. All the big four corporations have still gone strong until today.
Brand names may come into play to influence the customers. Microsoft’s Windows Media and Apple’s QuickTime might have an advantage over the others. However, as more and more people are becoming technology-savvy, the brand name factor is not going sway the momentum to Windows Media and QuickTime. RealVideo and DivX offer the same qualities, and they are continuing to build their respective brand images in the digital media industry.
Remember what I have mentioned in the beginning about a party crasher? Well here comes one. Adobe’s Flash might be the future of digital media compression. Look at Youtube or Google Video and how much success those two have had. In fact with the abundance of social network sites out there, people wants thing fast, cheap, and innovative. So far, the big four have not come up with a solution to stop this rampaging bull. If this trend keeps on going, Adobe’s Flash format may just come out of nowhere and just steal the show. This article shows us how the Flash player is quickly becoming the standard for digital media, and why it will eventually take over from the big four. (If you are interested, there is a second part to this article).
In the end, I think that Microsoft, Apple, Real and DivX are becoming victims of the constant advancement in technology as well as the people who are using it. Their products have not changed much from the day of their respective launches. Sure there have been upgrades in terms of functions and fixed-bugs, but they have not taken into account the human part in technology. It is the people who are using technology, and they do not want the same old thing over and over again. Adobe Systems and its Flash player are at the right place at the right time. It offers convenience to the growing internet population, and with that, they may have just won the war.
Monday, March 26, 2007
The War: A Game in Disguise
Hello world and welcome back to the battlefield. Today I will be looking at the impact of format wars on the video game industry. This is a phenomenon that has shaped the fame and fortune of many game console companies today. There are two format battles that I would like to highlight in respect to the video game industry: Cartridges vs. Discs and the recent Blu-Ray vs. HD DVD. The latter has been thoroughly discussed in the last blog, so I will spare you the details and focus on the match between the consoles themselves (Playstation 3 and XBOX 360).
If memory serves me right, it was the year of 1996 when the dominating Playstation was challenged by the emerging Nintendo 64. With a release one year earlier in 1995, Sony’s Playstation definitely had the advantage of capturing the sixth generation console market.
The Playstation was definitely viewed as a system more suited for mature players while the Nintendo 64 still holds a family-oriented image. Playstation came with the optical disc (CD) format while Nintendo 64 had a built-in cartridge format. Herein lays the main difference between the two systems and how Sony was able to bowl through Nintendo.
First of all, we need to see what is inside of these two formats. Here, we have some basic information and identify why the CDs would be preferred than cartridges. Since cartridges have been the standard for most video game consoles until that point, it is not Nintendo’s fault to stick with it. CDs are much lighter, compact, and store more data than cartridges. As a new entrant in the video game market at that time, Sony had done its due diligence very carefully and was able to dominate the sixth generation market despite competitions from established players such as Nintendo and Sega. In fact, Sega pulled out of the video game hardware industry in 2001 and started focusing on software only.
As such, Sony and its Playstations (1 and 2) continued to dominate until Microsoft came in the picture and gave it some competition with the original XBOX. Things started to get interesting as people are demanding more high-definition products. In come the Playstation 3 (PS3) with Blu-Ray and XBOX 360 with HD-DVD.
What goes up must come down. Sony’s worst nightmare came true when they released the PS3 in 2006. Blu-Ray, still new to people’s tastes, did not help the sales of PS3 at all during its launch. Microsoft, with XBOX 360 released a year earlier in 2005, had done what Sony did to Nintendo with the Playstation ten years earlier. This video discusses whether the PS3 is a failure.
The outcomes of the high-definition format and current game console market are still uncertain as it is still too early. However, I do believe that the two will be positively correlated. It is either PS3 and the Blu-Ray or XBOX 360 and HD-DVD.
I think that the lesson learnt here is the importance of early customer exposure to the game systems and formats introduced by these various companies. Those who get first exposure are going to get an advantage while the competitions have to catch up. It is also important to do your due diligence before launching your consoles. Some people, including me, are still comfortable with the PS2. Who could blame them? The unpredictable factor of technology is still one thing that we have to consider before jumping ship to either the PS3 or XBOX 360.
If memory serves me right, it was the year of 1996 when the dominating Playstation was challenged by the emerging Nintendo 64. With a release one year earlier in 1995, Sony’s Playstation definitely had the advantage of capturing the sixth generation console market.
The Playstation was definitely viewed as a system more suited for mature players while the Nintendo 64 still holds a family-oriented image. Playstation came with the optical disc (CD) format while Nintendo 64 had a built-in cartridge format. Herein lays the main difference between the two systems and how Sony was able to bowl through Nintendo.
First of all, we need to see what is inside of these two formats. Here, we have some basic information and identify why the CDs would be preferred than cartridges. Since cartridges have been the standard for most video game consoles until that point, it is not Nintendo’s fault to stick with it. CDs are much lighter, compact, and store more data than cartridges. As a new entrant in the video game market at that time, Sony had done its due diligence very carefully and was able to dominate the sixth generation market despite competitions from established players such as Nintendo and Sega. In fact, Sega pulled out of the video game hardware industry in 2001 and started focusing on software only.
As such, Sony and its Playstations (1 and 2) continued to dominate until Microsoft came in the picture and gave it some competition with the original XBOX. Things started to get interesting as people are demanding more high-definition products. In come the Playstation 3 (PS3) with Blu-Ray and XBOX 360 with HD-DVD.
What goes up must come down. Sony’s worst nightmare came true when they released the PS3 in 2006. Blu-Ray, still new to people’s tastes, did not help the sales of PS3 at all during its launch. Microsoft, with XBOX 360 released a year earlier in 2005, had done what Sony did to Nintendo with the Playstation ten years earlier. This video discusses whether the PS3 is a failure.
The outcomes of the high-definition format and current game console market are still uncertain as it is still too early. However, I do believe that the two will be positively correlated. It is either PS3 and the Blu-Ray or XBOX 360 and HD-DVD.
I think that the lesson learnt here is the importance of early customer exposure to the game systems and formats introduced by these various companies. Those who get first exposure are going to get an advantage while the competitions have to catch up. It is also important to do your due diligence before launching your consoles. Some people, including me, are still comfortable with the PS2. Who could blame them? The unpredictable factor of technology is still one thing that we have to consider before jumping ship to either the PS3 or XBOX 360.
Saturday, March 17, 2007
A Conundrum: Blu-Ray or HD DVD?
Welcome to another edition of my blog. This week I am going to put my perspectives on the recent high definition format battle between Blu-Ray and HD DVD. Is it already over before it begins? Will one format comes out as the clear winner? Will it be a sustainable advantage in the long run? These are questions which consumers and corporations have to answer before committing to one side.
Today, it is still unclear whether one can win the war outright. Consumers are still testing the waters before they buy a Blu-Ray or a HD DVD player for their high definition consumption.
Manufacturing and content partners have not made one format more desirable than the other. Blu-Ray does have more partners than HD DVD. Still, it has not figured out a way to differentiate itself. If one is to end the war right now, there will be no winner. This is definitely going to be a long battle possibly going into the next decade in 2010. Here, you can see why it is not that easy to declare one format the winner.
Maybe, a better way of looking at this is to let both format be in the mass media. A compromise in a war? Not very likely to happen, but it does spare the public of choosing between two potential winners. The company LG has come up with the first Blu-Ray and HD DVD combo player which will satisfy consumers who are playing it safe in the middle of the war. Such a solution is going to work in the short run where there is no frontrunner. However, it will not work in the long run when one pulls ahead in the race. A combo player can not compete with the cheaper standard.
The truce scenario above could happen, but greed and lust for power will be irresistible temptations for both Blu-Ray and HD DVD supporters. We are humans after all. More likely than not, one format will be the new standard while the other is going to be buried underground.
Gaining the upper hand by relying on technical specifications and manufacturing/content partners is not the wisest thing to do here since both formats are almost identical in the respective factors. I think that the winner will be the one who chooses the right channel in terms of communicating with the customers. It will be up to its partners and their methods of advertising and selling the Blu-Ray and HD DVD products. Again, I have to emphasize that this has to be sustained over a long period of time to become the clear cut winner.
“War, what is it good for?” This saying applies to both the companies and consumers involved in the Blu-Ray vs. HD DVD battle. Companies spend more and more to support its own format, while consumers have to either choose right now or play a waiting game to have a high definition player. Time, my friend, is of the essence. The high definition war will be over and a winner will be declared. When? We do not know. I guess we will just have to wait and watch while two giants are going at each other.
Today, it is still unclear whether one can win the war outright. Consumers are still testing the waters before they buy a Blu-Ray or a HD DVD player for their high definition consumption.
Manufacturing and content partners have not made one format more desirable than the other. Blu-Ray does have more partners than HD DVD. Still, it has not figured out a way to differentiate itself. If one is to end the war right now, there will be no winner. This is definitely going to be a long battle possibly going into the next decade in 2010. Here, you can see why it is not that easy to declare one format the winner.
Maybe, a better way of looking at this is to let both format be in the mass media. A compromise in a war? Not very likely to happen, but it does spare the public of choosing between two potential winners. The company LG has come up with the first Blu-Ray and HD DVD combo player which will satisfy consumers who are playing it safe in the middle of the war. Such a solution is going to work in the short run where there is no frontrunner. However, it will not work in the long run when one pulls ahead in the race. A combo player can not compete with the cheaper standard.
The truce scenario above could happen, but greed and lust for power will be irresistible temptations for both Blu-Ray and HD DVD supporters. We are humans after all. More likely than not, one format will be the new standard while the other is going to be buried underground.
Gaining the upper hand by relying on technical specifications and manufacturing/content partners is not the wisest thing to do here since both formats are almost identical in the respective factors. I think that the winner will be the one who chooses the right channel in terms of communicating with the customers. It will be up to its partners and their methods of advertising and selling the Blu-Ray and HD DVD products. Again, I have to emphasize that this has to be sustained over a long period of time to become the clear cut winner.
“War, what is it good for?” This saying applies to both the companies and consumers involved in the Blu-Ray vs. HD DVD battle. Companies spend more and more to support its own format, while consumers have to either choose right now or play a waiting game to have a high definition player. Time, my friend, is of the essence. The high definition war will be over and a winner will be declared. When? We do not know. I guess we will just have to wait and watch while two giants are going at each other.
Saturday, March 10, 2007
Let the War Begin!
Hello everyone, my name is Albert Kurniady. I am a senior at the University of Southern California (USC Link) majoring in Business Administration with an emphasis in Information System.
In case you missed it, there has been a war going on today.
Of course I am not talking about the war in Iraq, everyone knows that. It is the ‘format war’ in media technology. The latest occurrence of this battle is happening between Blu-ray Disc and HD DVD (FAQ: HD DVD vs. Blu-ray) to determine who will win the high definition optical disk format war. Contrary to popular belief, the war is not a recent event. Who could forget the videotape format war between VHS and Betamax in the 1970s (The Betamax vs. VHS Format War), or the portable audio tape formats between 8-track and audio cassette in the 1960s (Audio Tape Evolution). These are just the few known format wars, and there are many others which truly shape the way media works in the 21st century.
The victors of past wars were determined by various factors. It is important to note that pure technical superiority alone does not guarantee victory. I think that the end consumers like you and me are the main reason for victories in past battles. Our opinions and feelings towards products are what count the most, and companies must certainly incorporate this crucial factor when releasing their products. Many companies and products had ignored the consumers and focused solely on their precious technology. For instance, look at the recent release of the Playstation 3. With superior specifications and the Blu-ray Disc capability, it looked to be the certain favorite to win Blu-ray the high definition format war. This was certainly not the case as customers preferred the readily available XBOX 360 and easier to get Nintendo Wii. With lesser technical specifications, and the HD DVD drive, the XBOX 360 might have swung this format war to give HD DVD the momentum. (XBOX 360 Won 2006 Holiday)
One other aspect about the war is that it is a marathon, and not a sprint. XBOX 360 and HD DVD might have won based on numbers during holiday sales, but the war must be fought over a period of 3-5 years to determine the true victor. Sustaining success over that period of time will be the ultimate challenge for many companies involved in the format war. Establishing a product as the standard bearer will be the goal of these corporations.
Another thing worth considering is the unpredictability factor of the format war. Similar to a real battlefield, one little alteration in strategy may change the outcome of the war. Corporations need to outthink and outmaneuver each other, and that is a hard thing to do. It is like the TV reality show the ‘Survivor’ where survival is the key concept that must be ingrained in the competitors’ heads. If you let one competitor get a huge lead, it will be nearly impossible to catch up. This is why companies spend billions of dollars from their resources to have the right strategy and implementation.
Over the next few weeks, I will try my best to entertain you over interesting pieces of information about the format wars. As there are plenty of battles to choose from, I will pick and choose the most notable ones. However, I am going to concentrate mainly on the most recent ones and the one going on right now (Blu-ray vs. HD DVD). Hopefully, you will have a wider scope about the format war after reading my blogs.
In case you missed it, there has been a war going on today.
Of course I am not talking about the war in Iraq, everyone knows that. It is the ‘format war’ in media technology. The latest occurrence of this battle is happening between Blu-ray Disc and HD DVD (FAQ: HD DVD vs. Blu-ray) to determine who will win the high definition optical disk format war. Contrary to popular belief, the war is not a recent event. Who could forget the videotape format war between VHS and Betamax in the 1970s (The Betamax vs. VHS Format War), or the portable audio tape formats between 8-track and audio cassette in the 1960s (Audio Tape Evolution). These are just the few known format wars, and there are many others which truly shape the way media works in the 21st century.
The victors of past wars were determined by various factors. It is important to note that pure technical superiority alone does not guarantee victory. I think that the end consumers like you and me are the main reason for victories in past battles. Our opinions and feelings towards products are what count the most, and companies must certainly incorporate this crucial factor when releasing their products. Many companies and products had ignored the consumers and focused solely on their precious technology. For instance, look at the recent release of the Playstation 3. With superior specifications and the Blu-ray Disc capability, it looked to be the certain favorite to win Blu-ray the high definition format war. This was certainly not the case as customers preferred the readily available XBOX 360 and easier to get Nintendo Wii. With lesser technical specifications, and the HD DVD drive, the XBOX 360 might have swung this format war to give HD DVD the momentum. (XBOX 360 Won 2006 Holiday)
One other aspect about the war is that it is a marathon, and not a sprint. XBOX 360 and HD DVD might have won based on numbers during holiday sales, but the war must be fought over a period of 3-5 years to determine the true victor. Sustaining success over that period of time will be the ultimate challenge for many companies involved in the format war. Establishing a product as the standard bearer will be the goal of these corporations.
Another thing worth considering is the unpredictability factor of the format war. Similar to a real battlefield, one little alteration in strategy may change the outcome of the war. Corporations need to outthink and outmaneuver each other, and that is a hard thing to do. It is like the TV reality show the ‘Survivor’ where survival is the key concept that must be ingrained in the competitors’ heads. If you let one competitor get a huge lead, it will be nearly impossible to catch up. This is why companies spend billions of dollars from their resources to have the right strategy and implementation.
Over the next few weeks, I will try my best to entertain you over interesting pieces of information about the format wars. As there are plenty of battles to choose from, I will pick and choose the most notable ones. However, I am going to concentrate mainly on the most recent ones and the one going on right now (Blu-ray vs. HD DVD). Hopefully, you will have a wider scope about the format war after reading my blogs.
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