The Rise And Fall Of Betamax
By | February 27, 2022

Today, technology has created the “streaming wars” where providers like Netflix, Disney Plus, and other companies fight tooth and nail for our $12+ per month. However, long before streaming was even a glimmer in some nerd’s eye, Sony’s Betamax went up against VHS to see who would come out on top in the tale of the tapes.
For those who don’t know, before DVDs there were tapes. These tapes contained content in rolls of cinematic tape, rather than being digitally etched upon a CD. These paradigm-shifting bricks of plastic carried our favorite movies like Jaws, Star Wars, and Indiana Jones that could be enjoyed in the comfort of your own home. Here’s the story of Betamax vs. VHS.

Betamax Throne
While VHS eventually buried Betamax thanks to a number of questionable decisions by Sony, Betamax actually predated its successor. Betamax rose to power thanks to its quality and simplicity over the home video recording options that came before it.
Cameras and the accompanying equipment of Betamax all functioned seamlessly, making it the king of home entertainment. However, a new contender came for the crown, and as they say, if you come at the king, you best not miss.

VHS Vies For The Crown
After a few years of Betamax owning a monopoly over the home video market, VHS sought to create some competition. At first, the Betamax retained its hold over VHS, thanks to the slight video quality edge and their compact design. Tapes took up a lot more space and Betamax helped reduce the amount of clutter with their sleeker shape. However, eventually, Sony’s variety of head-scratching decisions began to wear to their advantage.

Fatal Flaws
For one Betamax tapes could only record for 60 minutes. That might work for your six-year-old’s birthday party. But if you wanted to view Lawrence of Arabia at home, you needed four tapes! Not to mention, you might have to swap said tapes at a particularly inconvenient moment during the movie. Another problem arose if you wanted to review the video on your camcorder. With VHS you could simply replay it on the little video screen; Betamax lacked such a convenience.
However, by far the biggest mistake Sony made was how they wielded their licensing. If any non-Sony entity wanted to put their movies on Betamax, they were forced to buy a license from Sony. On the other hand, VHS offered an open license which allowed studios to lower the prices. This difference came into stark contrast when Paramount Pictures offered the movie Top Gun in 1987 for just shy of $27. Previously, even VHS tapes would routinely cost $100 or more!

Hanging On
Amazingly, despite VHS wiping the floor with Betamax’s corpse, Sony continued to produce their obsolete invention all the way up to 2002! To further cut off their noses to spite their faces, Sony eschewed manufacturing their own VHS tapes up until 1990. Essentially, for nearly 20 years Sony lost billions of dollars in potential revenue just to hold on to the dream of Betamax until its grim death. Apparently, they still held out hope that the 5% difference in quality and slight size difference would win the day.