Sony Betamax and the VCR Wars
1976–1984What Happened
Hollywood once tried to kill the VCR, arguing that home recording would destroy its business. In the Sony Betamax case, studios sued Sony over its tape recorders; the U.S. Supreme Court ultimately ruled that time‑shifting was fair use, clearing the way for the home video boom that later made studios billions.
Outcome
Studios lost the legal battle but discovered that selling and renting tapes and DVDs became a massive revenue stream.
The fight became a textbook example of how incumbents misjudge new technology that can actually expand their markets.
Why It's Relevant Today
Disney’s current move echoes that arc: after attacking some AI tools as piracy, it is now betting that licensed AI distribution can be the next VCR-like windfall.
