1c presentation-vh svs-beta
DESCRIPTION
TRANSCRIPT
![Page 1: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/1.jpg)
Extract of the original promotion video of Betamax 1974
1
![Page 2: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/2.jpg)
Sony Betamax
Donato Verardi, Marcel Sutter, Oliver Stampfli,Patrick Hammer, Thomas Thalmann
The Real Story
2
![Page 3: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/3.jpg)
• Creation of new market
• Making Betamax a standard
• Betamax evolves
• The format war begins ...
Report Agenda
3
![Page 4: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/4.jpg)
• Before 1974
• Sony’s U-Matic is de facto standard for professional video recording
• But U-Matic devices too large and too expensive
• Home video recording inexistent!
Betamax to create Home Video Recording Market
Creation of a new market
4
![Page 5: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/5.jpg)
• Late 1974
• Sony cannot move alone ...
• ... tries to convince former U-Matic partners ...
• ... but Matsushita, JVC and RCA reject.
minimum 2 hours playing time required!
Making Betamax a standard
5
![Page 6: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/6.jpg)
• Up to September 1976
• 1975: Betamax launches the market
• No OEM nor licensing
• Sony is developing 2h-Betamax
Behind the scenes: JVC works on own format
Video Home System - VHS
Betamax evolves
6
![Page 7: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/7.jpg)
The format war begins ...
7
![Page 8: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/8.jpg)
VHS launch
• September 1976
• 2h-VHS launch
• But 2h-Betamax is coming shortly
Is Sony ready for the battle?8
![Page 9: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/9.jpg)
Betamax VHS
Has Sony done enough?
?Values from “Strategic Maneuvering and Mass-Market Dynamics: The Triumph of VHS over Beta”, M. A. Cusumano, Y. Mylonadis, R. S. Rosenbloom; Table 1
Cumulative Production
9
![Page 10: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/10.jpg)
• Q1: How did Sony prepare to make Betamax a standard?
• Q2: Sony’s advantages from being first-to market and how did they lose them?
• Comparison: JVC scored with ...
Analysis Agenda
10
![Page 11: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/11.jpg)
• High quality technical research leads to high quality and revolutionary product
• Set manufacturing in place
• Market research to know customer needs
Overconfidence in the successor of U-Matic by researchers and management
They have no flexibility to change Betamax 1
“We don’t believe in market research for a new product unknown to the public…so we never do any. We are the experts!” by Akio Morita
Preparations for Betamax
11
![Page 12: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/12.jpg)
• 100% market share, but Betamax 2 (March 77) was incompatible with Betamax 1 !!!
• No competitors, but failed to flood the market• no licensing for Betamax 1
• no OEM contracts
• not enough manufacturing capabilities
• too few alliances
Missed Advantages
Market share of Betamax in October 1976
12
![Page 13: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/13.jpg)
Alliances
Sanyo
Toshiba
PioneerAiwa
NEC
Sonyoverall 12 MatsushitaSharp
RCA Brother
Nikon
Canon
TelefunkenBlaupunkt
Magnavox
Hitachi JVCoverall 40
Olympus Mitsubishi
Richo
AkaiClarion
Teac
Thomson
Fisher
General Electrics
Granada
in 1983
13
![Page 14: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/14.jpg)
• Matsushita• took decision to produce 3-4h tapes for RCA
• Flexibility to change the VHS format• Encouraged partners to participate in project
• Licensing and OEM• They could build a lot of alliances
• Complementary assets (1980 and later)• Video rental market
JVC scored with ...
14
![Page 15: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/15.jpg)
Betamax VHS
Values from “Strategic Maneuvering and Mass-Market Dynamics: The Triumph of VHS over Beta”, M. A. Cusumano, Y. Mylonadis, R. S. Rosenbloom; Table 1
Cumulative Production
15
![Page 16: 1c presentation-vh svs-beta](https://reader033.vdocument.in/reader033/viewer/2022051411/547a9d7ab4af9fb9158b4bc5/html5/thumbnails/16.jpg)
Q & A
Questions?
... thanks for your attention!
16