Why Sony Lost the Battle Between Betamax and VHS
By: [Author Name]
In the late 1970s, a fierce competition emerged between Sony’s Betamax and Victor’s VHS as they vied for dominance in the emerging home VCR market. The question remains: why did Sony ultimately lose this battle? In their illuminating book, “Leadership that Uses the Power of People”, co-authors Masaaki Morita, who played a key role in the development and marketing of Betamax, and Hitoshi Kami, shed light on the noteworthy video war.
A “War Criminal” Speaks
Masaaki Morita candidly admits that he could be considered a “war criminal” in the enduring Betamax vs. VHS war, as he was entrusted with the responsibility of Betamax’s development and marketing. Reflecting back to 1967, Morita reveals that the idea of creating a home video system was initially championed by Mr. Ibuka, who envisioned a shift from solely broadcasting videos to home entertainment. After numerous trials and errors, the oversized “U-Matic” was introduced. However, Ibuka challenged Morita and his team to make it compact enough to fit in a pocket, leading to the birth of Betamax in 1973.
A Fierce Rivalry
Meanwhile, Victor, in collaboration with Matsushita Electric, was also developing its own video system, VHS. This rivalry intensified as both companies weighed the pros and cons of Betamax and VHS.
A Shifting Perspective
Sony took a noteworthy departure from its usual approach as it considered the commercialization of Betamax. Instead of targeting a global release, the company recognized the value of launching it first in Japan, where television was deeply ingrained in people’s lives.
Introducing the Concept of “Time Shift”
One pivotal factor that set Sony apart was their emphasis on the concept of “time shift.” Recognizing the audience’s desire for flexibility in television viewing, Akio, along with Sony, believed that TV shows should be enjoyed at a time convenient for the viewer. By recording programs on Betamax, users could watch them at their preferred time. Initially, Sony assumed an hour of recording capacity would suffice, considering the duration of popular shows like the taiga dramas, which lasted approximately 45 minutes.
Contrasting Strategies: Betamax vs. VHS
While Sony focused on the Japanese market and the importance of time shift, Victor placed more emphasis on the American market. Victor’s research indicated that Americans were less inclined to alter their TV viewing time and preferred movies as software on VCRs, with an average length of two hours. Consequently, Victor chose to prioritize longer recording durations, even if it meant producing a larger cassette. This became one of the key differentiators between Betamax and VHS.
Ultimately, Sony’s pioneering efforts in introducing the home video system and its focus on the concept of time shift were groundbreaking. However, the strategic divergence between Betamax and VHS, as well as differing cultural preferences, played a decisive role in Sony’s loss against Victor in the battle for VCR supremacy.
PRESIDENT Online 2023/10/21 13:00
In the late 1970s, a battle broke out between Sony’s Betamax and Victor’s VHS over standards for home VCRs. Why did Sony lose this battle? This is an introduction to the book co-authored, “Leadership that uses the power of people” (One Publishing) by Masaaki Morita, who was responsible for the development and marketing of “Betamax,” and Hitoshi Kami. “War criminal ” from video war talks
In fact, around 1967, I was responsible for the development and marketing of the Betamax home video tape recorder. So, you can say that I am a “war criminal” (in the standard video Betamax vs. VHS battle).
At that time, there were only videos for broadcasting in the world, but Mr. Ibuka for the idea of making a video for use at home, and after a lot of trial and error, he came up with the first one called “U-Matic.” It was quite big. Mr. said Ibuka, “Make it small enough to fit in your pocket,” and in 1973 Nobutoshi Kihara (principal researcher at the time) came up with the idea of Betamax size.
Betamax videotape (Photo = tsca/CC-BY-2.5/Wikimedia Commons)
At that time, Victor was also making videos, which were VHS videotapes. Matsushita Electric was also developing it, and they were deciding between Betamax and VHS.
There was one thing that Sony’s way of thinking was a little different than before. We had always thought of it as a global product, but when we decided to commercialize Betamax, we realized that we had to commercialize it first in Japan. No other people watched as much television as the Japanese.
The concept of “time shift”
Everyone was watching taiga dramas and NHK morning dramas, which are national television programs. However, there are times when I have something to do at that time and I can’t watch it. That’s why Akio thought “time shift” was important to television.
The TV station broadcasts what they think is a good time, but that’s because the TV station unilaterally thinks it’s a good time, so you can move it to a time that’ n more convenient for you and watching TV. Turn on video on each TV, record what you can’t watch, and watch it at a time that suits you. Akio and Sony’s concept was that television could only be completed by “time shift”.
The taiga drama was a 45 minute programme. There were not many programs that were longer than an hour. So Sony started with the idea that an hour of recording would be enough.
I think Victor probably talked to America a lot. Since very few Americans try to change the time of their television, they were told that it would be better to watch it as software. Considering a movie, it would take 2 hours. So, even though the cassette is big, I decided to make it two hours long. That’s the first difference between Betamax and VHS.
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