Contents

1. Introduction of discontinued product

1.1 Concept
1.2 Design
1.3 Operations
2. Primary users
2.1 Target user
2.2 Market share
3. Reasons why product was remove from market
3.1 Advantages of product
3.2 Disadvantages of product
3.3 Problems
3.4 Decline
4. Future of this product (able to re-introduce?)
4.1 Comeback?
4.2 Conclusion
5. References

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1 Introduction of discontinued product [2]
1.1 Concept

With the concept of becoming the next generation portable audio playing device, the
Minidisc was created. Minidisc was aiming to replace the older generation of portable
CD (Compact Disc) players; this was the reason that prompted Sony the company to
develop the Minidisc technology. Of course another reason was to diminish the failure of
the Betamax video recording system.

1.2 Design
From the name Minidisc people will now the concept and design will be small and
portable. The Minidisc is house in a cartridge of size (68 x 72 x5 mm). Conventional
audio CD is either premastered or recordable when it’s blank. Recordable Minidisc does
not record as audio format but as data (ATRAC format). Minidisc is able to record up to
80mins of songs in a single blank cartridge it early days, after some time later the
Minidisc is able to record up to 320mins of songs in a single blank cartridge.

1.3 Operations
Minidisc operations method is very similar compare to a hard disk drive of a computer,
majority of the space of the Minidisc is used to store the data (Songs), and a small part
of it will be for the TOC (Table of Contents). Table of Contents will be providing
information about the songs played, example: Track number, artists, name of songs etc.
Minidisc can be played using either by a Portable Minidisc player or on Minidisc Hi-Fi
Systems or Minidisc Decks. For recording people can also use a Portable Minidisc
player with recording function or Minidisc Recorder. By connecting the Minidisc portable
player to a Hi-FI system using a cable, customers will be able to record the songs.

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2 Primary Users

2.1 Target Users

Minidisc was launch in September 1992 by Sony in their bid to replace cassette tapes
and become the next-generation of portable audio devises. Primary target users would
students and working adults who needs to commutate everyday from home to work,
schools or vice versa. In short those existing users of Portable CD player or cassettes
players will be the primary targets. Sony vision or aim is to replace CD (Compact disc)
and Cassettes. Alternatively the secondary targets will be recording or broadcast radio
stations.

2.2 Market share

Sony aim wasn’t just domestically but globally. Thus marketing was done globally and
domestically before it was launch in September 1992. It was met with great success in
Japan and some part of Asia but response wasn’t as good as in the United States or
European countries. Only around an estimated 50,000 sets was sold in the other part of
the world compare to Japan. To counter this issue, Sony launches several major but
unsuccessful marketing campaigns, like reducing the prices.

3 Reasons why product was remove from market

Before we come to the most likely reasons that Minidisc was remove from the market,
let’s take a look at the advantages and disadvantages of the Minidisc. This way we
would all have a much clearer picture of the reasons why it was taken of the shelves
altogether.

3.1 Advantages of product

Strength

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 1. Small and compact - As mention before the Minidisc cartridge size was (68 x 72
x5 mm) relatively small compare to a CD (Compact Disc). The Minidisc portable
player was a small compact and lightweight.

2. Able to hold more songs than Compact Disc or Cassettes – Since Minidisc is
using data compressing to record songs for playback. The ATRAC format was
used initially to hold the same amount of songs an audio CD can carry but at a
smaller size of CD. But later Sony came up with MDLP (Minidisc Long Play),
where a new codec is used in the form of ATRAC3, depending on the song
quality you want by using this format it store up to more than four times the
recording time of the Minidisc (around 320mins in a 80mins Minidisc). What it
means here is that if customer wants a higher sound quality, they can choose to
increase the quality but the Minidisc can only store maybe half the amount of
songs instead of the 320mins, the Minidisc maybe can only store 160mins of
songs data.

3. Flexibility in recording – Minidisc can be recorded and erase easily, be it on a

portable Minidisc player, Minidisc deck or Hi-Fi system with Minidisc functions.

4. Anti-skip function – Unlike the normal Compact Disc player which prone to mis-
tracking from vibration or shock to the Compact Disc player. Minidisc is able to
withstand most shock and vibration unless under very severe conditions. Thus
normal playing of the Minidisc player won’t be affected by vibrations cause while
walking.

3.2 Disadvantages of product

Weakness
1. Price – The price of the Minidisc was expensive, for a normal portable Minidisc
player would be around $300 USD and for one with recording function would cost
around $400USD. This is very pricey for a portable audio player. Not only
portable Minidisc player was high, even the blank media cartridge is expensive.

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 2. Album [1] – Lack of pre-recorded album available in the market, as not many
record labels embraced this new technology during the 1990s.

3. Portability [1] – Ok the Minidisc is small and compact, so it should be portable,

but when more songs are being recorded the more Minidisc blank cartridges is
needed, meaning that customers has to carry more Minidisc cartridges in order to
have their favorites tracks with them.

3.3 Problem [2] and [3]

Actually there are more advantages of the Minidisc than disadvantages like the sound
quality is good, portable and compact but why did it still get phase out by the market.
The reasons I could think of would be maybe, (as stated below).

1. Market share – Unable to capture the users from the other side of the world like
the United States and Europeans countries.

2. Timing of release – The Minidisc was introduced to the market when there were
other competing formats such as Digital Compact cassettes, Recordable
Compact disc and Flash memory etc.

3. Poor Marketing - Yes, the Minidisc was a success in Japan and some part of
Asia but over in the United States and European countries. Sony tried to promote
the Minidisc player and recorder more at the United States, instead of trying to
promote the Minidisc portable player as a replacement for the Walkman or
Discman. Sony even tried to target the MTV industry was a marketing error, as
MTV industry at that time during the 1990s couldn’t afford the Minidisc player or
recorder. This shows poor marketing research was done; knowledge of
customers needs wasn’t there.

4. Overpricing of Players and Blank Media – The price of the Minidisc and blank
cartridges was simply to expensive, a 74 minute Minidisc blank cartridge costs
around $24, the Minidisc portable player itself would cost around $500 USD.

Threats

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 5. Better competitors - Introduction of Re-writeable Compact Disc, MP3 players I
believe was the main reason of the Minidisc being removed from the market. Re-
writeable CD was made much more affordable during around 1995, and the MP3
player was better and faster without the use of any media and is much more
portable and compact than any Minidisc player.

3.3 Decline [3]

The decline of the Minidisc I suppose should be during around in the late 1990s when
better and faster portable audio player surfaces. When the first MP3 player (Diamond
Rio PMP300), appeared during 1999, the Minidisc is losing even more of its limited
market share. But I believe it was when the release of IPod around October 2001, the
fate of the Minidisc portable player was seal. The Minidisc existence was slowly
disappearing away from the market.

4 Future of this product (able to re-introduce?)

4.1 Comeback?
Question of the Minidisc if its can still be re-introduced back into the market, in my
opinion I think it is still possible but maybe for the music industry as sound quality is very
important, but not as a portable music player or home audio system. Which MP3 players
are dominating now, like IPod and Creative to name a few brands, even Sony is
producing MP3 players now. Even the recording part is much easier now, with the MP3
customer can just drag and drop the MP3 files from their computers into their portable
MP3 players.

Reason why the music industry is still a possibility is because as I mention the sound
quality is important, despite MP3 being the most commonly used format this days but the
MP3 sound quality may not be as good and clear as the Minidisc. I think nowadays there
will still be record label company still using the Minidisc recorder or player.

4.2 Conclusion

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I myself was a Minidisc portable player user around 10 years back; I have more good
than bad things to say about this Minidisc technology. The Minidisc enables me to record
all my favorite tracks into a small Minidisc, the remote control earpiece that I can use to
control my Minidisc player, which was also cool. But one thing, which I mention above in
the disadvantages, was the many Minidisc media I have to carry around wasn’t just so
as portable anymore when I recorded more and more songs.

Back to the failure of the Minidisc technology, maybe with better research into what the
customer’s requirement is, timing of release, marketing and targeting of customers is
done, the Minidisc technology would have been a success not only in Japan and some
part of Asia but in the United States and European countries as well. And of course last
but not least overpricing of the product, which I believe, is a major factor contributing to
the failure. A good product doesn’t necessary means it will be successful in the market,
good researching and marketing is also essential to a product success. In short we have
to know what the market needs, what the customers needs.

5 References

Internet Reference
[1]

Customer review - http://www.reviewcentre.com/products27.html
[2]

Minidisc concept and design - http://en.wikipedia.org/wiki/MiniDisc
[3]

Background of Minidisc - http://www.ehow.com/facts_5156892_history-sony-
minidisc.html