Question

In: Economics

In the case of VCR format wars, the VHS format won because of: a. Beta was...

In the case of VCR format wars, the VHS format won because of:

a. Beta was an inferior format.

b. It had a stand-alone application that was helpful in solving the start-up problem

c. The standards were complements rather than substitutes.

d. Without coordination such markets tend to gravitate toward a single standard.

e. Sony and JVC did not solve the start-up problem.

Solutions

Expert Solution

In the case of VCR format wars, the VHS format won because of:

a. Beta was an inferior format.

Betamax was better than VHS in a number of ways. The tapes were smaller and the recorders were able to reproduce colour better than their rivals. They were also not unthreaded from the heads during fast-forward and rewind, which meant the Betamax decks responded better, returning to play or fast-forward quicker than VHS (although it couldn't spin the tape as fast).

Betamax also had a nifty trick that enabled 'bookmarking' at certain parts of the tape. Called APS, or Auto Programme Search, it was possible because the tape was always in contact with the play head. Essentially, the recorder put an electronic marker on the tape. When APS mode was engaged during fast-forward, the player would stop the tape at the start of each recording, negating the need to keep stopping the tape, pressing play to see where you were and then forwarding some more.


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