Video Wars

A new camera debuts

On prominent display in many stores this week will be a brand-new Eastman Kodak self-contained camera-video recorder, which uses narrow 8-mm tape. By Christmas the Kodavision unit will be joined by two more of the new generation of so-called camcorders: General Electric's Uni-Cam and a still-to-be-named Polaroid product. RCA has a system all ready to go, but is waiting to see how consumers respond.

This approaching battle among U.S. giants in the home-video-equipment field is a mere reflection of the war between Japanese companies. The Kodak and GE 8-mm camcorders are both made by Matsushita, while Toshiba created Polaroid's, and Hitachi is the source of RCA's. As many as ten Japanese manufacturers, including Sony and JVC, reportedly have their own version of the new video gear. They are closely watching American reaction to the introductions to decide when to bring out their products.

Japan already dominates the $8 billion home video market, producing 95% of all equipment. This year the Japanese will export an estimated 8 million video recording units to the U.S., twice as many as last year. Still, only 15% of American households have videotaping equipment of any kind.

Until now, camcorders have been limited to JVC's Video Movie and Sony's Betamovie models, both of which use half-inch tapes. Kodak's new 5-lb. 8-mm camcorder is designed to make filming of home movies easier. Another major advantage of the new models is a worldwide standardized format that will enable them to use any 8-mm tape; half-inch systems are not standardized. Kodavision sells for $1,600 to $2,600, depending on accessories, compared with $1,500 to $1,800 for those camcorders that use the wider tape.

So far, however, Kodavision has got mixed reviews. Television Digest with Consumer Electronics, a trade newsletter, rates it "an extremely easy-to-use, easy-to-handle instrument but one that currently falls short of achieving the best possible results to be realized from the top quality half-inch equipment today."

Industry analysts expect the technical performance of 8-mm systems to improve as the camera is refined. Competition, moreover, could eventually force prices down by 30% to 40% and thus add greatly to the product's popularity. Indeed, a Sony spokesman has already predicted, "The 8-mm camera will in the long run become the mainstay of home video recording."