Failed Video Formats Cost $1B: The forgotten formats collectors still crave

October 24, 2026

Failed Video Formats Cost $1B: The forgotten formats collectors still crave

Before streaming made it effortless to pick a film or album from a menu, home entertainment relied on a string of hardware formats that at the time felt cutting-edge. Many of those technologies failed to become the dominant standard, but today they retain a nostalgic appeal for collectors and enthusiasts.

There was a period when watching a movie meant visiting a rental store, scanning crowded shelves for a copy, and—if you’d borrowed it—making sure to return it before the due date. Listening to music often required carrying a portable player, swapping discs or tapes, or recording songs to build a personalized mix. Each new gadget promised clearer images, richer sound, and more convenient storage, yet some innovations ended up boxed away, sold at thrift shops, or preserved by hobbyists.

Betamax, MiniDisc, LaserDisc and HD DVD are part of that same story: formats that aimed to reshape how people consumed films and music but never became the universal choice. Some were outcompeted by better-marketed rivals, others found only niche followings, and a few were overtaken by entirely new distribution models. For collectors like Jorge Martínez—who gathers VHS movies, old toys, coins and vintage electronics—these items are more than obsolete devices. He values them for the memories they evoke and the way they connect him to past experiences.

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The market behind these formats was huge. The Digital Entertainment Group (DEG) reported that in 2006 U.S. consumers spent about $24.2 billion buying and renting movies on DVD and VHS, even as the industry was already jockeying over what the next home-video standard would be. That rivalry required heavy investment in research, manufacturing, distribution and licensing deals with studios. Winning meant selling millions of players and discs into households; losing could leave factories, inventory and technologies without a market large enough to recoup development costs.

Betamax: the early videotape format that lost to VHS

Sony launched Betamax in 1975, aiming to bring domestic video recording into living rooms. The system offered strong picture quality and relatively compact cassettes, but a competing format would soon overtake it: VHS, developed and promoted by JVC. Early Betamax machines typically had shorter recording times, while VHS tapes could run longer—an advantage for consumers who wanted to record entire movies or long television broadcasts.

VHS also won the support of many manufacturers, increasing the number of available players and driving prices down. That wider distribution helped VHS dominate video rental stores as well. Betamax didn’t vanish overnight—Sony sold millions of units over several decades and continued producing VCRs into the 2000s—but it gradually receded; Sony finally stopped making Betamax decks in 2002 and ceased cassette production in 2015.

“VHS is still fairly common, especially at flea markets, but Betamax is much harder to come by,” Martínez says. “Part of the thrill of collecting is not knowing what you’ll find.”

Betamax and VHS cassettes on a bright shelf in a living room
Betamax and VHS tapes remain sought-after by collectors.

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MiniDisc: a compact optical format eclipsed by digital files

In 1992 Sony introduced MiniDisc as an attempt to combine the portability of cassette tapes with the benefits of digital optical media. MiniDiscs were sealed inside small plastic cartridges and used in portable players; the rewritable versions allowed listeners to erase tracks, reorder songs and create custom compilations without relying on magnetic tape.

Despite these conveniences, MiniDisc faced hurdles. Players and discs could be pricey compared with alternatives, and the compact disc (CD) already had a firm foothold. The rise of MP3 files, portable digital music players and later smartphones further eroded MiniDisc’s appeal, since music stopped depending on a physical medium and could instead be stored as files on increasingly compact devices. Sony supported the format for many years and even released the Hi-MD variant, but it discontinued MiniDisc player production in 2013.

A MiniDisc player and cartridges on a sunlit table
MiniDisc players and cartridges preserved by enthusiasts.

LaserDisc: a large-format option for home cinema aficionados

Long before Blu-ray, another optical format aimed to deliver superior audiovisual fidelity at home—though it required plenty of shelf space. LaserDisc reached the U.S. market in 1978 and appeared in Mexico primarily during the 1990s. The discs were about 30 centimeters across, similar in diameter to vinyl records, and needed dedicated players.

“LaserDisc is something I rarely see. You might stumble upon a VHS or an old device, but some formats are much rarer at the flea markets I visit,” Martínez notes.

Unlike VHS tapes, LaserDisc used an optical read system, avoiding the mechanical wear associated with tape playback. The format offered notable improvements in picture and sound, and some editions included features such as scene selection. Still, its cost and size limited mass adoption: players were expensive and the discs were bulkier and less convenient than tapes. LaserDisc built a following among cinephiles and audiophiles but never approached the mainstream success of VHS; the later arrival of the smaller, more affordable DVD further reduced LaserDisc’s market.

HD DVD: a costly format war that ended in surrender

By the mid-2000s, as high-definition televisions entered more homes, the standard DVD began to feel inadequate for delivering the new level of detail. Two rival formats vied to succeed it: Blu-ray, backed by Sony and several partners, and HD DVD, championed primarily by Toshiba. Both promised higher-resolution movies and an enhanced home-theater experience, but consumers faced a dilemma—buy a player and risk that studios might not release films in that format.

The battle involved electronics manufacturers, movie studios, retailers and distribution networks. Hollywood’s support proved crucial—without studios issuing titles on a format, a player could struggle to find content. The conflict concluded in February 2008 when Toshiba announced it would halt HD DVD development, manufacture and sales. Toshiba later disclosed that its HD DVD business had led to losses of 108.5 billion yen in the fiscal year 2007—roughly $1 billion at the exchange rates of the time—of which 60.2 billion yen were operating losses and 48.3 billion yen were related to winding down the business.

Blu-ray emerged the victor of that contest, but the story didn’t end there: the rapid growth of streaming services later changed consumption habits again and reduced the need for physical discs. “DVDs are easiest to find—there are still tons in secondhand shops, markets and online,” Martínez says. “I think that’s because DVD is a newer format and many people still have them or want to part with their collections.”

From obsolete formats to sought-after collectibles

In an era when music, photos and movies are often stored in the cloud or on streaming platforms, keeping a physical disc or tape may seem unnecessary. For some enthusiasts, though, the tangibility is precisely the appeal. A MiniDisc still lets you create a personal mix; a Betamax tape can contain a film or TV show from a particular era; LaserDisc offers large-format artwork that works as a display piece; and HD DVD is a reminder of one of the last major format showdowns in physical video.

These items are part of a specialized secondhand market where value depends on condition, whether the player functions, availability of accessories and the rarity of certain editions. Online marketplaces like eBay make it possible to find these pieces and follow activity among sellers and collectors. Discogs, the music-collecting platform, reported that in 2025 its users added 114.2 million items to their personal collections—an increase of nearly 8% from the previous year—which pushed the total number of items cataloged by users above 920 million, a new record for the site.

According to eBay’s Recommerce Report 2026, which surveyed over 10,500 consumers and 1,700 sellers across various countries, 27% of sellers offer electronics and computing gear, while 31% list collectibles and memorabilia. Those figures don’t pinpoint exact market values for Betamax tapes, MiniDiscs, LaserDiscs or HD DVDs today, but they do show ongoing commercial activity around physical media, used devices and collecting.

“I like having the physical items,” Martínez says. “Watching a movie on a platform isn’t the same as holding the box, pulling out the tape and putting it in the player. It brings back memories from childhood.”

In Mexico, Martínez adds, flea markets have become a kind of refuge for people searching for technology that vanished from store shelves decades ago. Among piles of movies, toys, coins and vintage electronics, it’s still possible to uncover items that once represented the cutting edge of home entertainment. Finding Betamax tapes is getting tougher, he says, but flea markets and Facebook Marketplace remain among the best places to locate them.

From his experience, VHS tapes at market stalls can often be picked up for 50 to 100 pesos, while prices on internet sales platforms may be two or more times higher—especially for sought-after titles or special editions. The difference usually comes down to the seller: market vendors tend to sell used items at lower prices, while online sellers who specialize in collectibles understand the demand and can command higher amounts.

For Martínez, a big part of collecting older tech is the hunt itself—walking the stalls, digging through boxes and rescuing items others have discarded, yet which still hold value for those who grew up with them.

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