Betamax - The Legacy of Betamax

The Legacy of Betamax

For reasons Betamax lost to VHS, see Videotape format war.

The VHS format's defeat of the Betamax format became a classic marketing case study. Sony's attempt to dictate an industry standard backfired when JVC made the tactical decision to forgo Sony's offer of Betamax in favor of developing their own technology. JVC felt that accepting Sony's offer would yield results similar to the U-Matic deal, with Sony dominating.

By 1980, JVC's VHS format controlled 70% of the North American market. The large economy of scale allowed VHS units to be introduced to the European market at a far lower cost than the rarer Betamax units. In the UK, Betamax held a 25% market share in 1981, but by 1986, it was down to 7.5% and continued to decline further. By 1984, forty companies utilized the VHS format in comparison with Beta's twelve. Sony finally conceded defeat in 1988 when it, too, began producing VHS recorders (under license from Hitachi), though it still continued to produce Betamax recorders.

In Japan, Betamax had more success and eventually evolved into Extended Definition Betamax, with 500+ lines of resolution, but eventually both Betamax and VHS were supplanted by laser-based technology. The last Sony Betamax VCR was produced in 2002.