Why did the CED system fail to even come close to RCA's expected market penetration?

RCA expected to sell 200,000 players in 1981 (they sold half that number), and the company forecast that in 10 years the players would be in 30 to 50% of all American households with $7.5 billion in annual sales of players and disc. Why didn't this happen? The simple answer is competition from another video delivery platform- the VCR.

RCA's estimate of the success of the CED system may have been accurate, perhaps even conservative, if there had never been a video cassette recorder. When the CED system hit the market, VCR's were well established, and the typical consumer thought "Why would I want this VideoDisc player, when for about the same price I can get a VCR that both plays and records." RCA's market research didn't take videocassette rental into account at all, and a lot of consumers who earlier would have been willing to purchase movies now preferred to rent them.

If not for the media problems, RCA could have released the CED system regionally in 1977 when it probably would ... more.

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