DVD

By the early 1990s, the CD had proven that optical disc technology could replace magnetic media for music distribution. VHS tapes dominated home video, but their analog format degraded with each viewing, and the mechanical tape transport was prone to failure. The stage was set for digital video on disc, but competing formats threatened to fragment the market.

Two rival standards emerged simultaneously. Sony and Philips developed the Multimedia Compact Disc (MMCD), building on their CD heritage. Toshiba, Matsushita, and Time Warner backed the Super Density Disc (SD). The specter of another format war—like VHS versus Betamax—alarmed studios and retailers. Under pressure from major computer companies, particularly IBM, the warring factions merged their specifications into the DVD (Digital Versatile Disc) standard in 1995.

The adjacent possible required several technological streams to mature. Semiconductor laser technology had advanced to produce shorter wavelengths, enabling smaller pit sizes and higher density. MPEG-2 video compression, standardized in 1994, could encode feature-length films at acceptable quality within disc capacity. CD manufacturing infrastructure could be adapted for the new format. Content protection schemes, demanded by Hollywood, provided studios the copy protection they required to release films.

DVD launched in Japan in November 1996, reaching the US in March 1997. Adoption was rapid—faster than any previous consumer electronics format. The superior picture quality over VHS was immediately obvious. Random chapter access, multiple audio tracks, and bonus features offered capabilities impossible on tape. By 2002, DVD players outsold VCRs. By 2005, movie studios earned more from DVD sales than theatrical releases.

Geographic factors reflected the industry's structure. Sony in Tokyo and Philips in Eindhoven contributed optical disc expertise. Toshiba and Matsushita brought manufacturing scale. Hollywood studios, concentrated in Los Angeles, controlled the content that made players worth buying. Taiwan's contract manufacturers produced the drives that made players affordable.

The cascade effects reshaped entertainment. Rental chains like Blockbuster, optimized for VHS, found their model challenged by DVD's durability and retail pricing. Netflix launched its mail-order DVD service in 1998, exploiting the format's light weight and postal economics. Studios discovered that catalog titles generated substantial revenue on DVD, altering how films were valued.

But DVD's dominance proved shorter than VHS's reign. Streaming emerged as internet bandwidth increased. Blu-ray succeeded DVD for physical media but into a declining market. By 2025, optical disc players had become legacy devices, DVD sections in stores had vanished, and the format that transformed home entertainment was itself history—disrupted faster than it had disrupted its predecessor.