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The ENG system changed news broadcasting forever, but it was not the last of Sony's broadcast-use equipment. Toshio Fujiwara's team was developing other broadcast-use equipment for studio applications and on-site shooting under the supervision of Morizono. Unlike the ENG market, industry giants already occupied the market for studio-use equipment. At the time, studio-use VTRs were very expensive, two-inch quadruple head VTRs, each the size of two refrigerators. The market was divided between Ampex Corporation and RCA (Radio Corporation of America). These two Goliaths had a track record in the field of studio-use VTRs going back 20 years. Sony, the new entrant, faced a difficult task in taking market share from these companies. Moreover, in 1966 Sony had abandoned an attempt to enter the broadcast-use audio equipment business, and that only added to the difficulties this time around. However, Morizono was determined. He believed that, If we're going to do it, we should aim to become number one in the industry. To develop Sony's broadcast equipment business, we must create high quality products capable of complex programming that will be used by broadcast stations throughout the world.
In 1976, Sony introduced a VTR with a one-inch, 1.5 head system. The VTR was smaller than the conventional two-inch, four-head system, but could perform the same functions. In fact the price, running costs and size of this new product were one-third less than the previous competitors' models. Morizono showed this product to broadcasters all over the world. Unfortunately, initial customer response was cold. The sticking point was Sony's prior retreat from the broadcast market. We will never quit again, Morizono swore and tried to persuade potential clients. If Sony was to have a chance in succeeding in this industry, gaining the trust of broadcasters was most important.
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In the meantime, Sony was involved in heated discussions with Ampex and other manufacturers over the unification of one-inch VTR standards at SMPTE (Society of Motion Pictures and Television Engineers). There were concerns about launching the new VTR before a consensus was reached, but Morizono had already made a decision. He believed that when customers would see the image quality of this VTR, they would most definitely want to buy it. Morizono said, If SMPTE decides on different standards, we will offer customers to retrofit their equipment at wholesale prices. They will understand. If customers are willing to buy, we should launch the product now. Koichi Tsunoda adopted this sales pitch, and all major U.S. broadcast stations bought the new system.
Morizono then focused on the standardization discussions. We need to talk to Ampex and establish a unified format to facilitate the development of products that can be used worldwide. We must not inconvenience the customer. Morizono summoned Fujiwara and several engineers prior to visiting Ampex and told them, If Ampex's technology is far superior to ours, I'm willing to endorse it. I want you all to know this. Morizono's intention was to fully debate with Ampex about the pros and cons of the two systems before deciding which technology was better.
Ampex's arguments were logical and impressive, based on experience and tradition. Although consensus did not appear imminent, in the end Morizono's words changed the tide, Let's take the good points of both systems and merge them to form a unified standard. We must think of what's the greatest benefit to our users. Ampex was impressed with Morizono's genuine consideration for the customer, and the discussions gradually took a constructive tone. Finally, in December 1977, a standard that adopted the majority of Sony's technology was agreed.
Nicknamed Omega ( ), Sony's BVH series was based on the SMPTE helical-scan one-inch type C VTR format and realized image quality equivalent to live broadcasting pictures. This VTR was rapidly endorsed throughout the world for its low cost and easy to use editing functions. The BVH series became the world standard broadcast-use VTR. Sony next developed post-production equipment to enhance its lineup of broadcast video products.
In 1977, Morizono went to report to Iwama. By this time, sales of the U-matic were growing steadily in both the industrial and broadcast-use markets. It took us five years to finally get in the black. If we include sales figures for abroad, we've achieved quite a large revenue. Iwama welcomed him with warm words, Thank you. I'm proud of you.
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