From: znpt01@trc.amoco.com (Norman P. Tracy)
Newsgroups: rec.audio
Subject: Re: Sony's CD advertising
Date: 8 Sep 92 20:31:52 GMT
Organization: Amoco Production Company, Tulsa Research
Originator: znpt01@gpss43


In article <zarthac.715810017@camelot>, zarthac@camelot.bradley.edu (Matthew Simmons) writes:
> 
> Why is Sony advertising CD's as the greatest thing since sliced bread
> (I've seen at least 5 ads in on hour on MTV) when they're just going
> to introduce the MD and have to sell THAT as the latest and greatest.
> Wouldn't it make more sense to not advertise the CD, but say something
> like "coming soon, .... I suck at writing these things..." but
> basically piquing public interest in the MD?
> 
You have to keep in mind that Sony's MD (and Philips DCC) are to be marketed
as replacements for the compact cassette, NOT CD. Thus the emphasis on compact
size and portability. They do not want to kill the CD ca$h cow, remember Sony
and Philips get royalities off each and every CD and player sold in the world!
The plan is to keep CD as the 'premium' media and promote the new systems as
portable 'lifestyle' (whatever that is) products. So the message in Sony's CD
ads is 'don't forget CD and how wonderful it is'. Also consider Sony's plans
for super-delux, better-than-perfect, gold plated, 20 bit master, bit-mapped
line of CDs. The message that begins to emerge is the CD as luxury product and
MD (or DCC) bit reduced audio for the great unwashed masses.  I do see a chink
or two in their plans however.  One is co$t of the prerecorded MD or DCC. Both
Sony and Philips have indicated that your favorite hits on MD/DCC will be priced
about the same as CDs! In our market thats about twice the cost of the same
album on compact cassette.  They seem to have lost sight of the fact that one
of the reasons compact cassette became the worlds most popular music media is
that its CHEAP.  Blank MD/DCCs are also expected to be much more costly than
blank compact cassettes.  Why would they do this?  It worked when CD replaced
the LP record, how could they resist!  Do not forget that both these companies
also own record companies who benefit from high software prices. Now that mass
world wide production has brought the cost of stamping CDs as low as LPs you
don't see the price of a CD as low as Lps used to be.  The second problem I see
in MD/DCC marketing plans is the old alliance between Sony and Philips that
made CD an instant world standard is replaced with another format war. Sony/MD
vs. Philips/DCC.  I predict John Q. Public will miss the subtle differences
between the formats and rather see it as CD vs. MD vs. DCC. Having just spent
big buck$ to replace all his LPs with CDs and buy a CD player for home, a
changer for the car, and a CD walkthing for the briefcase he will elect to
sit this format war out.  When was the last time you were sitting around with
your friends and somebody said "what this world needs is a digital replacement
for compact cassettes"?

The real casualty of all this is CD-R (CD Recordable).  Remember Radio Shack's
plans to market a popular priced recordable CD?  Now they are on the DCC band-
wagon. CD-R technology exists, you can buy it today (recoders - $5000, blank
disks - $25).  Unlike DCC or MD a CD-R can be played back in any of the millions
of CD players in the world today. But do not hold your breath waiting for CD-R
prices to come down due to the economies of scale. The powers that be at Sony
and Philips and the record companies have decreed CD-R as too powerful a system
for the masses who must be content with 2% low fat bit reduced music media.
Vote with your pocket book$, DCC/MD I'm just saying NO.

Norman Tracy (znpt01@trc.amoco.com)
From: j_adams@hpfcbig.SDE.HP.COM (John Adams)
Date: Fri, 11 Sep 1992 18:51:00 GMT
Subject: Re: Recievers with optical digital input?
Organization: HP SESD, Fort Collins, CO