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Sony was the first Japanese company to produce an Ampex-type VTR. Ibuka, who believed that Sony's calling was making products for home use, however, was not satisfied with the distinction. He thus directed Kihara and his video development staff to research the use of transistors to create a more compact VTR. In November 1959, they succeeded in producing the first transistorized Ampex-style VTR, which was a big step toward a smaller VTR.
Then in 1960 Sony and Ampex agreed to share their VTR know-how. Ampex was anxious to gain Sony's knowledge in transistor application technology. Sony, on the other hand, could learn about VTR technology from Ampex. Masahiko Morizono, who had worked on audio equipment at the Sony audio factory in Haneda, was enlisted to help in this joint effort.
Unfortunately, this project did not last long. There were limits to the Ampex 4-head VTR. When any of the rotary heads became work, it was necessary to replace all of them, which was a major expense. Kihara's staff developed a 2-head transistorized VTR in which the individual heads could easily be replaced.
After research and testing a total of five trial models using Ampex and Sony VTRs, the end product was the world's first transistorized VTR, the SV-201. This 2-head, helical scan type VTR with a tape speed of seven inches/second (the same speed as an audio tape recorder) had much better performance characteristics than any other VTR in the market. Unfortunately, however, it was neither suited for broadcasting nor home-use. With just 2 heads, the broadcasting companies were not interested. It was also too large and expensive for the average consumer. Sony decided to develop different products for different markets. The result was Sony's PV-100. At approximately one fiftieth the size of broadcast VTRs, it was considered  portable, and represented a revolutionary breakthrough in miniaturization.
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Sony announced the PV-100 in September 1962. Less than a year later, sales of the 2.48 million yen set began first in Japan, followed by export sales to the United States. The PV-100 was intended for business-use ie., industrial, educational, and medical applications. Sony salespeople went from hospitals to schools and airline companies selling the VTRs.
At the time, most airlines used 8mm and 16mm films for their in-flight movies. Flight attendants, however, found the film difficult to handle. It often rolled off the reels or ripped. The short screening time also made the whole process even more troublesome. Thus, the airlines were very interested in Sony's suggestion of using VTRs instead.
In 1964 and 1965, VTRs were introduced on American Airlines and Pan American flights. Sony's job was to provide the software. In order to deliver new tapes to the airlines on a weekly basis, Sony established the In-flight VTR Service, a VTR duplicating factory in the suburbs of New York. This was seen as a sure money-making venture.
However, flight attendants seemingly did not treat tapes with much care. Flight attendants would jam the open-reel tapes while threading them or leave them near the beverage trays, where inevitably coffee would spill over them. The original estimate that the tapes could be used at least forty times was completely off target. Most tapes came back in pitiful condition after just one use.
Despite these troubles, Sony was relieved that the VTR, which was originally considered marketable only to broadcasting companies, had come one step closer to consumers. In addition, the basic technology behind this VTR developed by Nobutoshi Kihara and Masahiko Morizono was passed on to the 1-inch Omega VTRs and half-inch Betamax VTRs.
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